An initiative from the Security Summit is encouraging business owners and eligible taxpayers to opt in to a security program offered by the IRS. The Security Summit is a group developed by the IRS that partners with FinCen entities, software developers, tax and financial entities, and others. The group is divided into six groups, each of which focuses on a special interest like identifying better authentication practices, responding to strategic threats, and taxpayer awareness, among other topics.
The IRS is encouraging taxpayers to register for an IP PIN to thwart identity thieves who have gained access to social security numbers which they can use to file fraudulent tax returns. A false tax return can be filed and a refund obtained without the knowledge of the individual from whom identifying information has been stolen.
Between June and August of 2021, there have already been 222 reports of data theft from tax professionals. At this rate, the number of identity thefts this year will outstrip totals in 2019 and 2020. These large-scale data breaches may represent hundreds of taxpayers with each report. Here are things to know about the IP PIN program:
Verifying your identity on your tax return speeds your return and most importantly—keeps other people from claiming it.
With offices in Chicago and Cleveland, the tax attorneys at Robert J. Fedor, Esq. LLC deliver aggressive representation for clients throughout the USA and abroad. We offer strategic solutions to tax challenges including criminal tax matters, offshore tax questions, and payroll tax issues. To learn more or to schedule a free consultation, call 800-579-0997 or contact us.