The Internal Revenue Service (IRS) in conjunction with the State Tax Authority has waged a fight against identity theft through tax systems. During their previous summit, reports of notable progress on the initiative were tabled, while new procedures were laid out for the next phase.
IRS Identity Theft Statistics
Identity theft has been one of the gnawing and growing issue surrounding professionals today. Back-tracking to 2016, IRS can pride in having stopped 883,000 confirmed cases of unauthentic returns, which marked a 37% increase in this deplorable activity in 2015. In addition to this, within the first eight months of this year, it has already put to a halt 443,000 cases, which marks a 30% tremendous drop from the number in the same time last year.
IRS Present Measures
With the increase in the number of cases, the IRS has significantly improved its ability to bar fraudulent refunds. It has partnered with many financial institutions to pinpoint returns that pose questions. Moreover, approximately two years ago, it rolled-out a pilot program whose objective is to secure the verification process through W-2 forms. In turn, this has helped IRS in confirming both the accuracy and integrity of all the tax returns filed electronically. Ultimately, the outcome is evident since the numbers of complaints mailed to IRS have incredibly reduced within the two year period.
Curbing identity theft return has been effective due to the education of the taxpayers and tax professionals. The education initiative has gone a long way towards creating both accountability and awareness to safeguard identities online and to up the security and safety of the country’s taxation system.
IRS Protection Measures For The Future
With the progression of time and the modern technology in play, perpetrators are sourcing improved ways of executing this vice. Consequently, IRS has come to terms with this crude fact and has sworn to evolve with these changes, making it more cumbersome for these criminals to conduct their fraudulent activities.
For starters, IRS is focused on introducing a new Verification Code box on all W-2 forms in 2018. It aims at assisting taxpayers with the forms’ authentication process. Hence, if you will be preparing your tax returns, in putting the 16-digit code is a paramount requirement come next year.
On the other hand, businesses have not been left behind. They too face identity theft and protection is required. To actualize this endeavor, they will have to provide more information on their business, and also their clients to assist in the authentication process by the IRS. This seeks to fish-out illegitimate and unauthentic returns that may have been placed in the name of an enterprise.
In an effort to offer excellent services, IRS has a leading innovative team that keeps abreast with technology advancement for the sake of taxpayers’ protection. Moreover, it is imperative for the institution to offer taxpayer’s relief and assistance that is relevant to the victims of tax fraud. Relying on the services of the experts for all your tax requirements is the best decision you can ever make to avoid falling victim.
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