{"id":1903,"date":"2016-02-16T10:10:36","date_gmt":"2016-02-16T16:10:36","guid":{"rendered":"https:\/\/taxprocenter.proconnect.intuit.com\/?p=1903"},"modified":"2016-07-31T22:05:20","modified_gmt":"2016-08-01T03:05:20","slug":"irs-states-and-tax-industry-combat-id-theft-and-refund-fraud","status":"publish","type":"post","link":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/irs-states-and-tax-industry-combat-id-theft-and-refund-fraud\/","title":{"rendered":"IRS, States and Tax Industry Combat ID Theft and Refund Fraud"},"content":{"rendered":"

Identity theft and return fraud continue to be a top priority for the IRS, but never more so than this tax year.<\/span><\/p>\n

In the first public-private partnership of its kind, the IRS, state revenue departments and private sector tax industry leaders have come together to form the <\/span>Security Summit Initiative<\/span><\/a>. Through the help of these three parties, there are new and innovative safeguards in place to increase the protection of taxpayers\u2019 information and the integrity of the federal and state tax systems.<\/span><\/p>\n

But, that\u2019s not all! It\u2019s truly a collective effort where you can be involved, too. Through the \u201c<\/span>Taxes. Security. Together.<\/span><\/a>\u201d campaign, the Security Summit Initiative is reaching out to taxpayers to assist in fighting against identity theft and refund fraud. The campaign urges everyone to take an active role in protecting their personal and financial information, both online and at home. With the public\u2019s help, the Security Summit Initiative participants hope to strengthen these new security protections.<\/span><\/p>\n

Refund Fraud Detection and Prevention<\/b><\/p>\n

For several years, the IRS has aggressively and valiantly fought refund fraud and identity theft. The numbers illustrate that \u2013 through November of calendar year 2015, the IRS rejected or suspended the processing of 4.8 million suspicious returns, and stopped $2.9 billion of refunds in other types of fraud. That\u2019s not to mention the 1.4 million confirmed identity theft returns, totaling $8 billion. So, that\u2019s $10.9 billion in confirmed fraudulent returns protected.<\/span><\/p>\n

Despite the success, the IRS knows that there is much work still to be done. Fighting identity theft is an ongoing battle because identity thieves continue to find new ways to steal people\u2019s personal information for their personal gain.<\/span><\/p>\n

That\u2019s why there\u2019s such a strong effort to put new safeguards in place through the Security Summit. Some of these safeguards will not be seen by taxpayers, yet still are invaluable in fighting identity refund fraud. And, others will definitely be seen.<\/span><\/p>\n

For example, the most visible change will be new password protections for private-sector tax software accounts. Now, a minimum eight-digit password using a combination of letters numbers and special characters is required. New security questions, lock-out features and new ways to verify emails will also bolster protection. All changes are meant to help protect taxpayers from identity thieves who take over their computers and file fraudulent tax returns using their names and Social Security numbers.<\/span><\/p>\n

States have also stepped in, and have their own new safeguards. For example, driver\u2019s license numbers and other data may be required before the state releases refunds. Visit your <\/span>state\u2019s tax agency website<\/span><\/a> to see if there are changes for you in 2016.<\/span><\/p>\n

Staying transparent, the tax software industry will be sharing many new data elements with the IRS and the state, helping to determine if a return is valid. Moreover, the IRS continues to improve the efficiency and amount of identity theft data models and filters used to identify potentially fraudulent returns. These pre-refund filters prevent most fraudulent returns from going through, and the IRS continues to work with financial institutions to help the effort. The IRS, states and tax industry also will routinely share information about identity theft trends or new schemes so that all parties can react quickly and appropriately.<\/span><\/p>\n

Increasing Efforts to Help Victims<\/b><\/p>\n

Despite all these strides made to combat identity theft, there is still the very realistic and scary issue of helping victims of identity theft. The IRS knows that it is a very infuriating, complex process for victims, and they are working hard to resolve identity theft cases as quickly as possible.<\/span><\/p>\n

Each tax year, the IRS is reviewing and implementing processes and policies to minimize identity thefts and assist those that were victimized. Here are some of the key steps for this tax year:<\/span><\/p>\n