IRS Security Summit 2016
Saturday, July 2nd, 2016 @ 3:53PM
CFEG reports that the IRS, the states and the tax industry first came together in November 2015 and has continued in 2016 to identify even more safeguards to protect taxpayers’ federal and state tax accounts from identity thieves. CFEG has provided links which explains what the IRS has been doing in the Security Summit to protect taxpayers from identity thieves.
A few of the 2016 Security Summit highlights include, among others:
- New protocols required all individual tax software customers to update their security credentials to a minimum eight-digit password and establish security questions.
- Software providers shared approximately 20 data elements from tax returns with the IRS and states to help identify possible fraud. These elements are confidential but include information to identify returns prepared quickly by automated programs.
For 2017, the emphasis remains on authentication of legitimate tax filers, information sharing and cybersecurity. Most activities also will be invisible to taxpayers but will be extremely helpful to Summit partners in detecting and preventing identity theft returns and fraudulent refunds.
The 2017 initiatives, like those before it, generally will be invisible to taxpayers. A few 2017 initiatives include, among others:
- Expanding a W-2 Verification Code test to cover approximately 50 million forms in 2017. The selected forms contain a 16-digit code that taxpayers and tax preparers enter when prompted by software. The code helps validate not only the taxpayer’s identity but also the information on the form. This pilot is among the most visible Summit action for 2017.
Identifying additional data elements from tax returns that will help improve authentication of the taxpayer and identify possible identity theft scams and sharing data elements from corporate tax returns.
CFEG also reports on the 2015 Security Summit – Protecting Taxpayers from Identity Theft Tax Refund Fraud. In 2015 the IRS Commissioner called on leaders in the public and private sector to come together and work collaboratively to protect taxpayers from Identity Theft Tax Refund Fraud. On March 19, 2015 the IRS Commissioner convened a security summit meeting in Washington, D.C. with IRS officials, CEOs of leading tax preparation developers, payroll and tax financial product processors, and state tax administrators to discuss challenges and ways in which to utilize resources and efforts. CFEG has provided a copy of this 2015 Security Summit report for your review. To open click on the link below.