Most of what you've read online about IRS problems is wrong, or at least misleading. I'm Darrin Mish. I practice tax law in Tampa and I've been doing this for 32 years. Here's what's actually true.
The IRS has teamed up with state tax offices and private tax industry companies to combat tax fraud and identity theft in preparation for the 2016 filing period. Many changes are anticipated to appear this summer.
A coordinated approach will mean information will be shared by all in the coalition. Federal and state agencies and the tax industry have been working together for several months. This effort has been started due to a steep rise in identity theft and phone scams involving taxes.
Taxpayers filing on software may not see much difference next year, but software producers will be able to share information with the IRS and the state tax offices. It will be possible to detect whether the return originated from a legitimate web address and how long it took to prepare the return. Tax preparers and software producers will be able to tip off the IRS and state offices about suspicious activity and filing patterns, as well as hacking attempts on their systems.
There has been a sharp rise in identity theft and tax fraud. Organized crime has been involved. Identity theft in the form of social security cards stolen from other sources has surfaced.
H & R Block CEO Bill Cobb, a member of the group, has praised the effort and the progress, and hopes that more stringent safeguards will be instituted, such as more involved passwords and usernames.
Congress has also been encouraged to do what they can to assist. Licensing for all tax preparers is one suggestion.
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