Under pressure from Congress, IRS suspends Equifax contract

FILE - This July 21, 2012, file photo shows signage at the corporate headquarters of Equifax Inc. in Atlanta. Credit report company Equifax said Monday, Oct. 2, 2017, that an additional 2.5 million Americans may have been affected by the massive security breach of its systems, bringing the total to 145.5 million people who had their personal information accessed or stolen. (AP Photo/Mike Stewart, File)

WASHINGTON (AP) — The IRS has suspended a $7.25 million contract with the credit reporting company Equifax after members of Congress complained the tax agency had awarded a no-bid contract to a company that recently had a massive data breach.

The IRS had contracted with Equifax to validate the identity of taxpayers communicating with the agency on the telephone or through its website.

In a statement Friday, the IRS said it suspended the contract as “a precautionary step” while the agency reviews the company’s security systems.

Equifax revealed in September that hackers had obtained the personal information of more than 145 million people.

The IRS said none of its data was compromised.