Prior year AGI for efile

[SaraEA]

The IRS has finally figured out how to stop so many fraudulent returns by requiring that prior year AGI be reported as part of the efile signature. They used to require this info but stopped when they were trying to encourage efiling and thought this was a deterrent. They just made it too easy for the crooks. Once they got your name and SS number, they could easily find your birthdate and file away. Now they have to have your last year's tax return. I hope fraud will be stopped in its tracks with this requirement.

What to do with a first-time filer? I looked through the IRS manual and it says that first timers are not eligible for a self-select PIN. They can call and get one, but it also says they aren't eligible for that route either. I don't know what to do. We had one already that we don't think we can efile (entered 0 for prior AGI but it didn't eliminate the diagnostic). Today I did a newly married couple and entered both of their prior year AGIs; there was also a newly separated client filing as HOH so I entered their 2012 MFJ AGI. Don't know if this will work or not.

Anyone have the word on what to do when there is no prior year AGI or there has been a change in filing status? Since it's mandatory that we efile, I think the IRS should have issued some clear guidance in this area now that they've changed the rules.

[Pacun]

Enter it as ERO entered. Use any 5 digit pin.

[Jack from Ohio]

I have always used ERO entered. Using previous AGI will put many Federal rejects in your future. Too many of those and the compliance auditor will be knocking.

[David1980]

The IRS has finally figured out how to stop so many fraudulent returns by requiring that prior year AGI be reported as part of the efile signature. They used to require this info but stopped when they were trying to encourage efiling and thought this was a deterrent. They just made it too easy for the crooks. Once they got your name and SS number, they could easily find your birthdate and file away. Now they have to have your last year's tax return. I hope fraud will be stopped in its tracks with this requirement.

This would stop a lot of the identity theft returns, but they aren't doing it. As was indicated ERO method and you don't need it. Which is kind of sad - require just the taxpayer's date of birth match and a lot of identity theft goes away. Right now all they have to match is the SSN and 4 characters of the name.

Of course, there's a lot of fraud out there that isn't identity theft as well. Preparers that specialize in that kind of tax return where the taxpayer willingly uses them. Perhaps the taxpayer doesn't realize what the preparer is actually doing to get the large refunds but I don't really feel like the taxpayer is that much a victim when they're intentionally going to someone who gets much larger refunds than other preparers. And when they get the IRS letter, well, they probably just claim identity theft too. Not sure what the fix on that is.