Tax identity theft is a tough water leak to plug. It always has been, and always will be. In fact, the majority of identity theft cases reported are always tax-related.
The IRS is considering offering free credit monitoring services, providing identity theft PINs, letting a host of people know that someone tried to compromise their identity, and while unsuccessful, they could still be risk somewhere else, and lengthening the time period for the employers to file W-2s. At present, lacking W-2 information increases the difficulty for the IRS to detect when a false tax return has been filed.
The government will also have to make it easier to recover for victims of tax fraud. Victims are usually left holding the bag when trying to work their way out of having been ripped off. In the meantime, while the IRS is still trying to figure out ways of fixing the system, identity thieves are hard at work preparing for the 2016 tax season. A logical line of defense is for citizens to partner with a certified tax professional who can represent and assist them should they become victims of tax identity theft.
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Law Offices of Darrin T. Mish, P.A.: Tax Attorney