IRS Did Not Identify and Assist All Individuals Potentially Affected by the Get Transcript Application Data Breach
The IRS Get Transcript application was recently upgraded and went live in June 2016, after being disabled on May 21, 2015 due to fraudulent activity. The application allows taxpayers to view and download their tax information on the IRS public website. A recent TIGTA report found that IRS failed to identify and assist some taxpayers whose information was breached. Various reports concerning the number of victims in recent months have changed. This audit was conducted to evaluate IRS identification and assistance to victims of the Get Transcript application breach. Assistance includes sending potential victims a notification letter and marking their accounts with an identity theft incident marker.
When identity theft is determined IRS generally is required to:
- Notify a taxpayer of potential identity theft.
- Place an identity theft marker on the taxpayers account.
- Offer an Identity Protection Personal Identification Number (IP PIN).
- Offer free credit monitoring.
IRS failed to comply with the above for 79,122 individuals whose tax information was breached.
The tax professional can assist their client when identity theft occurs.
- Provide Publication 4524, Security Awareness for Taxpayers.
- Assist in the preparation of Form 14039 Identity Affidavit.
- Provide a copy of the Taxpayer Guide to Identity Theft which can be downloaded here.