IRS Needs Improvements for Tax Return Filing ?

Wednesday, January 27, 2016

When reviewing the process of filing tax returns and the access authentication processes for each tax account, it has been noted that that there are systematic improvements are that are needed.  The IRS is aware of the importance of having an effective process to authenticate each taxpayer’s identity, yet there has been no such process established that will manage the authentication approach. 

The IRS was audit by its monitoring body, the Treasury Inspector General for Tax Administration (TIGTA), which evaluated the efforts that the IRS takes in order to actually authenticate each identity when tax returns are filed. In general, taxpayers use electronic filing products and other electronic services which allow them to communicate with the IRS. For this reason, the IRS is working to provide individuals with online access to allows taxpayers to securely browse information, such as their recent payments, or to make changes to their personal accounts. This will also host a variety of correspondence directly with the IRS to submit forms or respond to notices.

One of the main concerns is the growing number of online security data breaches causing personal information to be compromised and misused leading to stolen identities. As such, the IRS has been diligently working to create a way to manage its authentication process by establishing groups to focus on this matter. At this point, neither of these two groups are working together to provide supervision, surveillance, or continued assessments of the current authentication processes. It is necessary for these groups to cross train to make sure that will address the current and future authentication needs. Also, the online authentication methods currently being used do not comply with federal government security protocols, which is alarming to the auditors of TIGTA. This is a main reason for the security breaches when cyber criminals gain access to unauthorized tax account information.

The IRS is finding it necessary to create better methods to authenticate the identities of taxpayer’s identities so that their tax information are not provided to just anyone. If unauthorized tax information is disclosed to anyone, there become increased risks that identity theft will continue to occur. 

The TIGTA audit report suggests that a system-wide strategy become a part of the process to establish management and oversight of all authentication processes and programs. This will make sure that the risk of authentication of application processes will meet the established security standards.  The IRS has agreed to implement TIGTA’s recommendations.

The Strategic Tax Lawyers LLP are experienced IRS tax attorneys, as well as IRS Fresh Start attorneys who assist client with their tax-related matters, such as offshore bank accounts. These IRS tax lawyers can help you plan how to remove guesswork to prevent any issues.  The Strategic Tax Lawyers offer free and confidential consultations about estate planning, estate tax exemption, will & trusts and tax-related issues. Call today at (800) 669-4775 if you need assistance.