After June 27, 2019, the IRS will no longer fax the tax individual or business tax transcripts. This prohibition applies regardless of whether the tax transcript is requested by either the taxpayer or a third party, e.g., lenders and tax professionals.
Tax transcripts are commonly requested because the transcript contains summarized information that is identical to what is reported on the original tax return. But unlike tax return copies, tax transcripts are available free of charge. The combination of these two features have made tax transcripts a popular target for identity thieves.
Identity thieves use the information reported on tax transcripts to file fraudulent tax returns for refunds. A fraudulent return based upon a tax transcript is more likely to slip past security safeguards because the return closely resembles a legitimate tax return. Therefore, the IRS is taking this additional step to protect confidential taxpayer data from identity thieves.
To read the full article from RSM, click here.
Authors:
Alina Solodchikova – Senior Manager
John Deininger – Manager
Cindy Hull – Senior Associate