President, IRS Want to Crack Down on ID Theft Related to Tax Returns

By

With the tax filing deadline taking place next week, President Obama’s administration wants to reduce the increasing level of identity theft related to tax returns.

His 2014 budget plan has a proposed $5,000 civil penalty for tax-related identity theft, restrictions on accessing Social Security death records, and a requirement which would allow employers to omit employee Social Security numbers on W-2 wage statements, according to a news report.

The IRS has complained that access to taxpayers’ information taken from death records or employer payroll files “can create fraudulent tax returns and obtain refunds before the actual taxpayer is aware of the theft,” Bloomberg News reported.

The IRS’s identity-theft office received some 450,000 cases during the 2012 fiscal year, which is 78 percent over the number in fiscal 2011, the source said based on data from the National Taxpayer Advocate.

Obama’s plan also calls for increasing sentences for defendants convicted of tax-related identity theft, The Associated Press said.

The IRS claims during 2012 that it stopped some $20 billion in fraudulent returns. Part of that amount is related to ID theft.

Also, tax-related identity theft jumped more than 650 percent between 2008 and 2012, according to the IRS Taxpayer Advocate Service.

Despite the numbers, the 2013 LifeLock Tax Fraud Survey showed that only 24 percent of U.S. taxpayers selected ID theft as one of the “top two points of concern.”

“As a company that sees identity theft threats 24/7, we are concerned about the large disconnect between this growing threat and consumer education. This is really playing into the hands of identity thieves,” LifeLock President Hilary Schneider was quoted by TechZone360.

Also, the U.S. Senate Special Committee on Aging has investigated the number of identity thieves claiming other people's refunds, according to CPA Practice Advisor. New laws are possible.




Edited by Braden Becker
Get stories like this delivered straight to your inbox. [Free eNews Subscription]

TechZone360 Contributor

SHARE THIS ARTICLE
Related Articles

ChatGPT Isn't Really AI: Here's Why

By: Contributing Writer    4/17/2024

ChatGPT is the biggest talking point in the world of AI, but is it actually artificial intelligence? Click here to find out the truth behind ChatGPT.

Read More

Revolutionizing Home Energy Management: The Partnership of Hub Controls and Four Square/TRE

By: Reece Loftus    4/16/2024

Through a recently announced partnership with manufacturer Four Square/TRE, Hub Controls is set to redefine the landscape of home energy management in…

Read More

4 Benefits of Time Tracking Software for Small Businesses

By: Contributing Writer    4/16/2024

Time tracking is invaluable for every business's success. It ensures teams and time are well managed. While you can do manual time tracking, it's time…

Read More

How the Terraform Registry Helps DevOps Teams Increase Efficiency

By: Contributing Writer    4/16/2024

A key component to HashiCorp's Terraform infrastructure-as-code (IaC) ecosystem, the Terraform Registry made it to the news in late 2023 when changes …

Read More

Nightmares, No More: New CanineAlert Device for Service Dogs Helps Reduce PTSD for Owners, Particularly Veterans

By: Alex Passett    4/11/2024

Canine Companions, a nonprofit organization that transforms the lives of veterans (and others) suffering PTSD with vigilant service dogs, has debuted …

Read More