I've read 6 versions of this article on different sites
not one of them answers the basic question of why the IRS thought/claimed this was necessary in the first place. People have been merrily filing their taxes online for quite a while now, why the change?
Also, why facial recognition, why biometrics, and in what way is having me upload a copy of an id verifying anything? Unless they are pulling the records from the state dmv/miltary id/passport databases I could upload a fake. If they are pulling them in from those sources, why the effing hell am I uploading a copy when they already have one.
And having the company delete their copy of the photo of my ID isn't really the whole problem of date (mis)use by a third party company. The company, and the probably shady ways they will sell that data to a third party (or just sell themselves to someone and transer all the data that way) is selling the association and information, not the picture.
If they wan't to beef up their authentication, ditching their BS pin system in favor of off the shelf TOTP, oauth, etc would probably be a better idea.