As posted in Accounting Today
March 8, 2016 by Michael Cohn
As part of the continued crackdown on refund fraud and identity theft, the Internal Revenue Service today released the Top 10 Identity Theft Prosecutions for Fiscal Year 2015. These prosecutions are part of the wide-ranging strategy to combat refund fraud and assist taxpayers through detection, prevention and resolving identity theft cases in a timely manner.
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As management advisors, we strive to keep our readers informed, educated and in-step with the latest news surrounding business and personal cyber security. Knowlege is power — and we are fortunate to receive many pieces of communication each day from credible agencies that help us guide you.
Today, we share insight from the AICPA’s National CPA Financial Literacy Commission’s latest news.
H.R. 3832, Stolen Identity Refund Fraud Prevention Act of 2016, would establish a centralized point of contact at IRS for ID theft victims; improve taxpayer notification of suspected identity theft; require the Internal Revenue Service to submit a study on the feasibility of establishing a program for victims of identity theft-related tax fraud to opt out of electronic filing; and establish an Information Sharing and Analysis Center to collect, analyze, and share actionable data and information to detect and prevent identity theft. Two core components of the bill were enacted last December and the rest were passed Monday.
The bill was sponsored by Rep. Jim Renacci, R-Ohio, and John Lewis, D-Ga., the ranking Democrat on the House Ways and Means Oversight Subcommittee. Renacci is a CPA who also fell victim to identity theft.
Free e-book: Tax Return Fraud and Identity Theft: What to do if Your Identity is Stolen
“Today, the House passed my bipartisan bill to protect hardworking American taxpayers,” Renacci said in a statement Monday. “Tax-related identity theft is an evolving criminal activity that can happen to anyone. In fact, last tax season my identity was stolen and used to file a fraudulent tax return.”
The Ways and Means Committee passed the bill late last month (see House Committee Passes IRS Legislation on Identity Theft, Missing Children and Tax-Exempt Donors).
“We must do all we can to fight identity theft, return theft, fraud and scams,” said Lewis. “In the last few years, the Taxpayer Advocate staff assisting my constituents in Atlanta, and the caseworkers working in my District Office have seen an alarming increase in scams targeting the American taxpayer. H.R. 3832 responds to the real needs of real people. The Stolen Identity Refund Fraud Prevention Act of 2016 is a good, bipartisan and timely legislative step in the right direction.”
The bill now moves to the Senate. “I look forward to working with my Senate colleagues to ensure this bill is signed into law,” Renacci said.
“Every year, people across the country discover they are a victim of tax-related identity theft,” said Ways and Means Committee chairman Kevin Brady, R-Texas. “Congressman Jim Renacci turned his personal experience as a victim of identity theft into a legislative solution that will help protect all Americans. The bill we passed today will prevent fraud, increase transparency, and improve IRS customer service to better serve taxpayers. I appreciate Congressman Renacci’s leadership against a crime that impacts so many Americans.”
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Aggressive and threatening phone calls by criminals impersonating IRS agents remain a major threat to taxpayers, but now the IRS is receiving new reports of scammers calling under the guise of verifying tax return information over the phone.
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Credit: U.S. Department of Homeland Security
Secure driver’s licenses and identification documents are a vital component of a holistic national security strategy. Law enforcement must be able to rely on government-issued identification documents and know that the bearer of such a document is who he or she claims to be. 
The REAL ID Act is a coordinated effort by the states and the Federal Government to improve the reliability and accuracy of state-issued identification documents, which should inhibit terrorists’ ability to evade detection by using fraudulent identification.
Tax season is prime time for scammers and cyber criminals. Beyond identity theft, which is seemingly quite commonplace, tax scams have the dubious distinction of rising to the top of the Better Business Bureau’s list of scams in 2016.
According to the Better Business Bureau Scam Tracker, the top ten list includes:
Identity thieves cannot steal what they cannot find. While you may never be able to “hide” or protect all of your personal, financial information from getting out there, there are a number of simple ways to limit the exposure of your information. The Federal Trade Commission says there are four main ways to help protect yourself against identity theft.
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