The IRS has identified identify (ID) theft as one of the biggest challenges facing it today. If you go to www.irs.gov and type in “identify theft” in the IRS search engine, there is much useful information provided. However, are you aware that the federal government enables ID theft?
Here are two thoughts as to how the federal government can minimize ID theft.
First, the Social Security Administration publishes within two weeks of an individual’s death the name of the deceased, the address at date of death, date of death, date of birth, and SOCIAL SECURITY NUMBER. This policy needs to be changed. It allows ID thieves to use this information to file false tax returns for these people or to claim them as dependents on other false tax returns.
Second, the IRS issues a PTIN (preparer tax identification number) to tax return preparers. One of the reasons cited for the need to have a PTIN is to protect the SSN of the tax preparer. Another reason is that the use of the PTIN allows the IRS to verify that a tax return it receives has been prepared by a tax preparer that has registered with the IRS and meets certain qualifications. However, the IRS is required under the Freedom Of Information Act (FOIA) to publish its PTIN information about tax preparers. There are companies that have websites where all one needs to do is to type in the last name of the tax preparer and the zip code of the preparer, and the full name and the address of the preparer is shown.
Now ID thieves are armed with vital taxpayer and tax preparer info and can file a tax return with the IRS showing refunds due them.
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