Did you Catch the new IRS Online Security Features to Enhance Privacy and Security?
Last year, the Internal Revenue Service (IRS) issued a list of dirty dozen tax scams rocking the country. One of the scams on the list was unemployment insurance fraud. Under this was the issue of unscrupulous individuals who submit applications for unemployment payments using stolen or fake identities to perpetrate an account takeover. Just like that, someone can take over your identity and start committing all kinds of tax frauds and other crimes in your name.
For this reason, the IRS has been trying to ensure that every taxpayer’s identity is secure. They want to ensure that whenever they deal with an individual, it is the rightful person using their identity. One of the ways to do that was the suggestion to use a third party, ID.ME for verifying new online accounts with the IRS.
But the idea was quickly discarded after the IRS said “it understands” privacy concerns raised by the people.
For this reason, there has been further communication from the IRS, and this includes how they will continue to protect your identity online while making it easy for taxpayers to trust the process. Below we outline some of the security features announced by the IRS after doing away with using a third party.
No need for any biometric data
The IRS announced that a new authentication system is now available. They said it allows a taxpayer to sign up for an IRS online account without using any biometric data, including facial recognition. You will no longer be required to submit your selfie to a third party when creating an IRS online account. Besides taking time and pressing every taxpayer to be tech-savvy in order to take and submit acceptable selfies, this method was seen as unsafe by taxpayers. They raised concerns over submitting such personal information to a non-governmental company. The IRS understood, hence the move away from this.
You can now verify your identity directly with the IRS
Even though the IRS scrapped submitting your selfie to a third party, that did not change that they are still determined to ensure that every taxpayer’s online profile is secure. Therefore, the agency announced that all taxpayers have the option to verify their identities during a live, virtual interview with IRS agents.
This way, there will be no biometric data captured. However, it remains to be proved if taxpayers can easily access this option. This is because IRS’ understaffing problems are well documented. The agency has recently been criticized by Congress and urged to improve their service delivery after it was reported that taxpayers would be put on hold for several minutes, if not hours, before talking to an IRS agent over the phone.
The third party is still in the picture – but with some adjustments
Even though the IRS announced doing away with the third party, ID.ME, for biometric verifications, they did not entirely shelve the process. They merely removed the ‘mandatory’ identity verification using ID.ME. So, this is the crucial change regarding this third party. I understand that many taxpayers believed that it had been totally scrapped, but that is not the case.
Going forward, taxpayers can elect to still verify their identities with ID.ME. However, there is something new regarding this process. If you elect to verify your identity with this company, your pictures (the ones you used to verify your IRS account) will be deleted instantly. They will no longer be kept on the company’s servers. More so, those taxpayers who had already opened their IRS accounts and verified their identities using this company before this new announcement will have their images deleted in the coming weeks, if they are not already deleted.
IRS future plans
The IRS is determined to provide an automatic solution that taxpayers will entirely trust when verifying their IRS online accounts. As such, they are working for a better, long-term solution to roll out Login.Gov as an authentication tool. They are currently ceased with the final preparations to ensure that the security standards align with IRS requirements. The aim is to roll out this option after the 2022 filing deadline.
The bottom line
Identity issues are a serious concern. Several taxpayers lose their identities each year not only because of the IRS’ failure to verify account owners, but also because of unscrupulous individuals who pose as tax professionals. This tax season is currently underway, and many people have already fallen prey to identity thieves. It would help if you, as a business owner or individual taxpayer, ensure that you work with a reputable tax professional who is registered with the IRS. If you have any questions about securing your identity or need someone to prepare your 2021 tax return, talk to me today. My contact details are on this page.
Frequently Asked Questions
- How do I set up an IRS account online?
You can go to https://www.irs.gov/payments/your-online-account and choose “Sign in to your Online Account.” There will be options to create a new account. Use suitable options to set up your IRS account.
- How do I check my stimulus payment history?
You can log into your IRS online account to check your stimulus payments history. If you do not have an IRS account, follow the steps above to create one.
- How do I verify my IRS account?
You can verify your identity through ID.ME upon opening the IRS account. But the IRS also allows you to choose to verify your identity through a virtual call with an IRS agent. The IRS will soon unveil Login.Gov to help taxpayers securely verify IRS accounts.
- How do I contact my local IRS office?
Find out about your local IRS office and get their appointment booking phone number. Call the IRS local office to make an appointment using the number provided. You can use this tool https://apps.irs.gov/app/officeLocator/index.jsp to find your IRS local office and their contact details.
