The U.S. Senate has passed, and President Trump is expected to sign into law, a broad package of reforms aimed at the IRS. Among other things, the Taxpayer First Act contains several new protections for taxpayers, along with provisions intended to improve the IRS’s customer service.
Stronger safeguards against identity theft
Several of the bill’s provisions address tax-related identity theft. For example, the bill generally requires the IRS to notify a taxpayer as soon as practicable when it suspects or confirms an unauthorized use of the individual’s identity. The IRS also must:
• Provide the taxpayer instructions on how to file a report with law enforcement on the unauthorized use,• Identify any steps the individual should take to permit law enforcement to access his or her personal information during the investigation,
• Provide information regarding the actions the taxpayer can take to protect him- or herself from harm, and
• Offer identity protection measures, such as the use of an “identity protection personal identification number” (IP PIN).