IRS considers retaining taxpayer biometric data for up to three years
The proposal seeks to reinforce fraud investigations with AI, but raises alarm over privacy
The Internal Revenue Service (IRS) and the US Treasury Department are analyzing changes that would allow the biometric data of millions of taxpayers to be preserved for longer, a measure that has already begun to raise concerns about privacy and government surveillance.
The information was revealed by Politico, which had access to internal documents and presentations used by Treasury officials in recent meetings on digital security and combating tax fraud.
According to the report, the US government is evaluating modifying the agreement with the technology company ID.me, in charge of verifying the identity of users who access federal platforms, including the tax system.
The IRS wants to extend the biometric retention time
Currently, biometric information linked to closed accounts must be deleted within 24 hours. However, the new proposal would allow the company to retain that data for up to 36 months after an account has been deleted.
The initiative comes amid the growth of digital fraud driven by artificial intelligence and deepfake technology, a problem that is increasingly worrying federal agencies.
According to data cited in the report, AI-based scams increased more than 1,210% during 2025, according to figures from ID.me itself.
A company spokesperson assured that biometric data is not freely shared with the federal government.
“The federal government cannot share ID.me biometric data between agencies because ID.me does not share that data with the government in the first place,” the company stated.
The firm added that it would only provide biometric information through a court order or mandatory legal requirement.
Privacy and surveillance concerns grow
Despite these guarantees, privacy experts consider that extending the storage time represents a potential risk for citizens.
An IRS employee cited anonymously by Politico called the proposal “scary,” warning of the possibility of extremely sensitive information remaining active for years without clear knowledge of users.
In addition, the IRS is considering incorporating “one-to-many comparison” mechanisms, a technology that would allow biometric data to be crossed to detect fraud linked to false identities created using artificial intelligence.
However, specialists warn that these types of systems can be invasive and imprecise.
Senator Mark Warner urged caution in implementing the new measures.
“Taxpayer privacy is of vital importance, and the IRS must take extreme precautions to safeguard biometric data,” declared the Democratic legislator.
Fear over the handling of personal data
The discussion also occurs in a context of growing distrust about the handling of personal information within the federal government and private companies.
Nina Olson, executive director of the group Center for Taxpayer Rights, warned that citizens may be less willing to share financial information if they perceive their data will remain stored for years.
“Taxpayers will start to change the way they file returns if they feel there is no transparency,” he said.
So far, the IRS has not confirmed whether the modifications will be officially implemented, although it acknowledged that there are internal discussions about new data retention policies.

