Hundreds of US tax officials were caught looking through confidential taxpayer records last year, despite repeated efforts to hit the snoopers with the sack or suspension

Over 500 investigations were opened by the IRS against its officials for snooping through records, with many checking up on ex-spouses or neighbours, reported The Wall Street Journal.

The number of investigations rose from 448 a year earlier, despite legislation enacted in the late 1990s to increase penalties for the nosy taxmen.

One snooper caught had sold information to identity thieves, a report by the Treasury Inspector General for Tax Administration found.

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