OFFICIALS LEGISLATION INTEREST GROUPS PUBLIC STATEMENTS COMMITTEES VETOES

Letter to John Koskinen, Commissioner, Internal Revenue Service, US Department of the Treasury - Identify Theft

Letter

Date: Sept. 1, 2016
Location: Washington, DC
Issues: Taxes

Dear Commissioner Koskinen,

I am writing in regards to the recent Treasury Inspector General for Tax Administration (TIGTA) report finding that the Internal Revenue Service (IRS) has continually failed to inform victims of employment-related identity theft, despite having the unique ability to do so and despite having the issue flagged by the Inspector General five years ago. I am appalled that the IRS is not doing everything in its power to help victims of identity fraud and worry that without IRS notification, these innocent taxpayers may not be able to prevent further misuse of their personal information.

In 2011, TIGTA found that the IRS is in a "unique position to identify cases in which a taxpayer's [Social Security number] has been compromised," because the IRS is able to identify tax returns that are filed with a Taxpayer Identification Numbers with attached Form W-2's that report wages and withholding under a different taxpayer's Social Security number.

Between 2011 and 2015, the IRS flagged nearly 1.1 million returns because they used a stolen valid Social Security number. And according to TIGTA, during a short-lived IRS notification pilot program, more than 20 percent of victims did not receive notification. This is unacceptable. The lack of this process means that victims are still being left in the dark and unable to prevent further misuse of their personal information.

I therefore respectfully request a response to the following questions:

1. Is new legislation needed to allow the IRS to inform taxpayers when they are the subject of identity theft, including employment-related identity theft?

2. How will the IRS address the concerns raised by TIGTA in its August 2016 report?

3. Will the IRS identify and notify employment-related identity theft victims whose identities were stolen prior to January 2017?

Identity theft can cause problems for victims for years, and the IRS should do whatever it can to minimize this burden - including ensuring that victims of employment-related identity theft receive timely notification from the IRS.

Thank you for your prompt attention to this issue and I look forward to your timely response.


Source
arrow_upward