New Mexico CPA Tips: ID Theft PreventionApril 26th, 2017 by Integrity Accounting
New Mexico CPA Tips on ID Theft Prevention:
The IRS has recently implemented various authentication measures that emerged from the Security Summit. While many of the measures might go unnoticed, some are quite obvious. One measure is the two-factor authentication for e-services – which has already prompted a lot of feedback (including some complaints.) But according to the IRS, these measures will significantly decrease risk of fraud and ID theft.
“the Internal Revenue Service today launched a more rigorous e-authentication process for taxpayers that will significantly increase protection against identity thieves impersonating taxpayers to access tax return information through the IRS Get Transcript online service. “ – IRS.GOV
The other is the optional W-2 pilot program, that isn’t being heavily used just yet. The program is an effort to help stop tax return fraud and identity theft.
“…initiative to verify the authenticity of Form W-2 data. This initiative is one in a series of steps to combat tax-related identity theft and refund fraud.
The objective is to verify Form W-2 data submitted by taxpayers on e-filed individual tax returns.” – IRS.GOV
This Verification code appeared on approximately 50 million Forms W-2 in 2017, up from the 2 million forms in 2016.
These techniques implemented by the IRS can certainly be a hassle, but as a CPA firm that has seen our fair share of clients’ identities compromised – and the cost and pain that goes along with it – we know that these measures are worth it. The real benefit of these IRS programs is to keep you, your information, and your identity safe from fraud.