Jeffrey Porter, in a recent article published in The Tax Advisor, discusses the increase in identity tax fraud happening to many taxpayers. The article lists five proposals that the AICPA has supported in relation to tax fraud:
- Using truncated Social Security numbers on W-2s and other tax forms,
- Giving the IRS access to the National Directory of New Hires database,
- Permitting more taxpayers access to the identity protection personal identification number ( IP PIN) program,
- Moving up the due date for W-2s and 1099s and requiring the Social Security Administration to immediately transmit W-2 information to the IRS, and
- Making it a felony to steal a taxpayer’s identity in relation with tax fraud.
Earlier this year, the IRS announced a collaborative effort of 34 state revenue departments and 20 tax industry members to put strong new safe guards in place for the 2016 tax season.
These efforts, while aiming at combating fraud, still come with concerns. For example, more information needed from taxpayers could potentially slow down the preparation and refund process.
For more information on identity theft and tax fraud, please contact Brenda Jacobs at (616) 608-8530 or bjacobs@brickleydelong.com. To read the full referenced article, click here.