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Breach Costs Printer Contract

June 2007
BROOKLINE, MA—An Indiana printer saw its contract terminated by the state of Massachusetts after some residents of this village were mailed tax forms with their neighbors’ social security numbers on them.

The state’s Department of Revenue canceled the pact after Indianapolis-based Allison Payment Systems—contracted for $235,000 to print and mail estimated income tax coupon books to 411,000 taxpayers statewide—erroneously sent 45 mailings that contained social security numbers to wrong addresses, the Boston Globe reported.

The Revenue Department’s taxpayer advocate, Joseph McDermott, personally called each of the 45 mis-routed recipients and asked the people to mail them back. The books are sent to residents who make estimated quarterly tax payments, typically the self-employed or those whose income is irregular in frequency.
 

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