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updated: 10/4/2017 9:27 AM

Senators bewildered by Equifax contract with IRS after hack

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  • Former chairman and CEO of Equifax Richard F. Smith, scratches his head as he testifies before the Digital Commerce and Consumer Protection Subcommittee of the House Commerce Committee on Capitol Hill in Washington, Tuesday, Oct. 3, 2017. AP Photo/Carolyn Kaster)

    Former chairman and CEO of Equifax Richard F. Smith, scratches his head as he testifies before the Digital Commerce and Consumer Protection Subcommittee of the House Commerce Committee on Capitol Hill in Washington, Tuesday, Oct. 3, 2017. AP Photo/Carolyn Kaster)
    Associated Press

 
 

WASHINGTON -- Senators are expressing bewilderment that credit reporting company Equifax has received a $7.25 million contract with the IRS to provide taxpayer and personal identity verification services.

A Senate committee is examining the data breach at Equifax that's affected more than 145 million people.

Republican Sen. Ben Sasse (sas) of Nebraska has this question for the company's former CEO: "Why in the world should you get a no-bid contract right now?"

Richard Smith says he doesn't know whether it was a no-bid contract, but says it's his understanding the contract was something Equifax has had in the past and "I think it's being renewed."

The contract says Equifax was the only company capable of providing the services, and it was deemed a "critical" service that couldn't lapse.

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