IRS.gov switching to a new login system called "ID.me". privacy policy looks pretty bad

the irs.gov website says they're switching to a new login by this summer. in their privacy policy:

In addition, you may be asked to provide certain further information or documentation that we will use to verify your eligibility to receive discounts and benefits from organizations and registration authorities such as government agencies, telecommunications networks, credit card bureaus, financial institutions, or authoritative agents with access to your group affiliation credentials, military records (which may also contain Personally Identifiable Information)(collectively, “Registration Authorities”), …

bad id.me irs login policy privacy privacy policy system