Mass identity theft prompts the IRS to take action

Cyber-thieves based in Russia and other countries recently hacked into an IRS website, stealing U.S. taxpayer information and using that information to file more than 10,000 false tax returns. In return, the hackers walked away with tens of millions of dollars in tax refunds.

Since then, the IRS has been working with federal agencies, state agencies and private companies such as H&R Block and Liberty Tax to agree upon new safeguards. The goal is to make such mass identity theft an impossibility.

According to USA Today, the new protective measures will begin in 2016. Among other things, these measures will mean that:

  • When someone files a tax return electronically, the IRS will make note of the IP address and capture other information in order to help identify the person as the legitimate filer of the return and not a hacker.
  • The federal government will collaborate with private tax-preparation companies and share information about potential tax fraud.
  • Private tax-preparation firms will agree to abide by the security standards set forth by the National Institute of Standards and Technology.

While this joint endeavor between public and private tax agencies is intended to reduce identity theft and the likelihood of fraud, it is certainly not foolproof. Refund fraud will undoubtedly still occur to some degree, and innocent taxpayers may still be unjustly charged with tax crimes from time to time.

For knowledgeable, up-to-date assistance with any tax crime concern, it is wise to consult a lawyer who is skilled in this particularly complex area of law.

No Comments

Leave a comment
Comment Information
  • ABA | American Bar Association
  • AV Preeminent | Peer Rated for Highest level of Professional Excellence | 2018
  • Virginia State Bar | 1938
  • Super lawyer | 2018
  • DC Bar
  • American Bar Academy of Attorney - CPAs | The power of the dual view
Email Our Team

Contact Us to Get Started Today

Located in the Washington, D.C area, we serve clients in the District of Columbia, Maryland and Northern Virginia, as well as across the country and overseas. For a free initial consultation, call 202-381-1261 or complete our brief online form.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Six Convenient Office Locations in and around the DC Metropolitan Area

Washington, D.C.
1629 K Street NW, Suite 300
Washington, D.C. 20006

Phone: 202-618-1873
Fax: 888-235-8405
Map & Directions

Columbia Office
10440 Little Patuxent Parkway, Suite 300
Columbia, MD 21044

Phone: 410-497-5947
Fax: 888-235-8405
Map & Directions

Annapolis Office
888 Bestgate Road
Suite 400
Annapolis, MD 21401

Phone: 410-497-5947
Fax: 888-235-8405
Map & Directions

Fairfax Office
8280 Willow Oaks Corporate Drive
Suite 600
Fairfax, VA 22031

Phone: 703-621-7169
Fax: 888-235-8405
Map & Directions

Rockville Office
199 E. Montgomery Avenue
Suite 100
Rockville, MD 20850

Phone: 240-599-5009
Fax: 888-235-8405
Map & Directions

Baltimore Office
400 East Pratt Street
8th Floor
Baltimore, MD 21202

Phone: 443-743-3381
Fax: 888-235-8405
Map & Directions