The House Committee on Oversight & Government Reform yesterday held a hearing on IRS E-File and Identity Theft. Jim White (Director of Strategic Issues, Government Accountability Office) testified at the hearing, Status of IRS Initiatives to Help Victimized Taxpayers (GAO-11-721T):
My testimony today will cover (1) when IRS detects identity theft-based refund and employment fraud, (2) the steps IRS has taken to resolve, detect, and prevent innocent taxpayers’ identity theft-related problems, (3) constraints that hinder IRS’s ability to address these issues, and (4) the potential for more rigorous screening to prevent refund or employment fraud now and in the future. …
The number of tax-related identity theft incidents (primarily refund or employment fraud attempts) identified by IRS has grown:
- 51,702 incidents in 2008
- 169,087 incidents in 2009
- 248,357 incidents in 2010.
After three victims of identity theft at the hands of the IRS testified (Lori Petraco, Lavonda Thompson, and Sharon Hawa), IRS Commissioner Douglas Shulman apologized in his testimony.
- Fox News, IRS Chief Apologizes for Employees’ Rudeness
- The Hill, GAO: Taxpayer Identity Theft on the Rise
- Network World, Does the IRS Need More Options to Fight Identity Theft?
- New York Times, From the IRS, a Rare Return: an Apology
- Wall Street Journal, IRS Chief Warns Lawmakers on Identity Theft
- Wall Street Journal, IRS Experienced ‘Significant Increase’ In Identity Theft Issues
