Autonomy’s software deal with US taxman

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The "seven-figure" deal with the Internal Revenue Service is likely to lead to many follow-up orders as tax lawyers and accountants seek to use the same weapons in the tax battle as the IRS.

The software enables the IRS to plug into the side of companies' and individuals' IT systems to track and read not only their tax returns but any related e-mails, documents and voice-mails.

Yesterday Autonomy signed a deal with an unnamed global bank based in the US which could be worth as much as $35 million (£22.7 million) over the next few years.