The Internal Revenue Service (IRS), states and tax industry are taking new steps in their efforts to protect taxpayers from tax-related identity theft. Known as the Security Summit, the collaborative effort between IRS, states and tax industry began in March 2015. Now they're asking for one more hand in their efforts - this time, from the taxpayer. Specifically, members of the Summit have asked taxpayers to consider a few simple steps to better protect their personal and financial data online and at home.
Among the tips that taxpayers can take to protect themselves:
- Use security software to protect computers. This includes a firewall and anti-virus protection. If tax returns or sensitive data are stored on the computers, encrypt the files. Use strong passwords.
- Beware of phishing emails and phone scams. A common way for identity thieves to steal names and Social Security numbers, passwords, credit card numbers, bank account information is to simply ask for it. Clever criminals pose as trusted organizations that you recognize and send spam emails, calls or texts. Their email may ask you to update a bank account or tax software account and provide a link that to a fake website that is designed solely to steal your logon information. They may call posing as the IRS threatening you with jail or lawsuits unless you make an immediate payment. They may provide an attachment which, if you download, will infect your machine and enable the thief to access sensitive files or track your key strokes.
- Protect personal information. Do not routinely carry your Social Security number. Properly dispose of old tax returns and other sensitive documents by shredding before trashing. Check your credit reports and Social Security Administration accounts at least annually to ensure no one is using your good credit or using your SSN for employment. Oversharing on social media also gives identity thieves even more personal details.
IRS Commissioner Koskinen said, about the tips, "These are all basic, common sense steps that you no doubt have heard many times if you are a regular Internet user. But there are 150 million households that file taxes, and problems still happen. Security software still gets turned off. And there are still, on a regular basis, victims who are tricked by these clever phishing schemes. Not only can this harm the individuals attacked, this can have a direct impact on tax administration."
You can also find this information on the web at www.irs.gov/taxessecuritytogether and in IRS Publication 4524, Security Awareness for Taxpayers (downloads as a pdf).
The tips are part of an ongoing public awareness campaign to involve taxpayers in the fight against identity theft. That fight includes strategy sessions with members of the Security Summit.
The Security Summit was officially announced on March 19, 2015, when IRS Commissioner Koskinen met with public and private tax administration leaders to discuss how to best address the increasing challenges of identity theft. At that time, IRS officials, leaders from top tax preparation firms, software developers, payroll and tax financial product processors, and state tax administrators first came together to discuss how they could best protect taxpayers in the 2016 filing season.
Three months later, Summit participants announced they had reached agreement on recommendations to protect taxpayers and the integrity of the federal and state tax systems. Those recommendations included the sharing of information. That information, which includes aggregated analytical information about tax filings, will be used to help identify fraud.
Most recently, on November 19, 2015, IRS Commissioner Koskinen and Summit participants announced a new public awareness campaign dedicated to further protecting taxpayers against identity theft. The "Taxes. Security. Together." campaign is designed to raise public awareness and complement the protections the IRS, states and tax industry are putting in place for upcoming tax season. The campaign will continue through April 2016.
Participants at the November Summit meeting included 15 Tax Commissioners from across the country will be present representing Alabama, Connecticut, Delaware, Idaho, Maryland, Missouri, New Mexico, New York, Rhode Island, South Carolina, South Dakota, Vermont, Virginia, Wisconsin and Washington, DC. Speakers included David Sullivan, Tax Administrator for the State of Rhode Island and immediate past President of the Federation of Tax Administrators (FTA); Julie Magee, State Revenue Commissioner of Alabama; Kevin Sullivan, Connecticut Commissioner of Revenue Services; Kathy Pickering,
The November Summit participants also announced new standards for logging onto tax software products. Those standards include new password requirements (minimum of eight characters with upper case, lower case, alpha, numerical and special characters), additional security questions and standard lockout features including a limit on unsuccessful log-in attempts. Software will also include additional verification for email addresses, including required responses to email or texts with a PIN, a common practice used throughout the private financial sector.
Additionally, Summit participants have agreed to share information on a weekly basis to help quickly identify and adjust to new and emerging tax-related fraud schemes. This, together with the extra security measures, will mean stronger protections for taxpayers for the upcoming tax season.
For more about the Security Summit:
