IRS asking for taxpayer representatives’ personal information

[jklcpa]

Be ready for these new questions because the level of BS that we go through to interact with IRS keeps getting deeper.  Maybe we should submit blood tests and DNA samples.  jk

Below is the text of an article today in AICPAs Journal of Accountancy:

Quote

 

Taxpayer representatives are now being asked for their Social Security number and date of birth, in addition to their Centralized Authorization File (CAF) number, so that IRS agents can verify their identity when they call the IRS. The new questions result from an updated version of Internal Revenue Manual (IRM) Section 21.1.3.3, which took effect Jan. 3.

IRM Section 21.1.3.3, titled “Third Party (POA/TIA/F706) Authentication,” instructs IRS agents on how to “complete the appropriate research” to verify the identity of taxpayer representatives who indicate that they have a third-party authorization on file with the IRS, such as Form 2848, Power of Attorney and Declaration of Representative, or Form 8821, Tax Information Authorization. In the previous version of IRM Section 21.1.3.3, updated in October 2017, agents were told to ask the representative for the taxpayer’s name and taxpayer identification number (TIN), for the tax period and forms in question, and for the representative’s name and CAF number.

Under the updated procedures, however, the agent requests the representative’s Social Security number and date of birth as well. An IRS representative says this is being done to protect taxpayer information and mitigate risk to practitioners.

Although the new IRM section is not yet available on the IRS’s website, its existence has been verified by IRS personnel. The IRS says it plans to communicate the changes to practitioners in the near future.

— Alistair M. Nevius ([email protected]) is the JofA’s editor-in-chief, tax.

 

 

[SaraEA]

But aren't we being told that SS numbers are not to be used for identification purposes?  Why doesn't the IRS ask for PTINs or something else?

[Catherine]

How about shoe size and date of last pedicure?  Sheesh.  And what about those of us who are not certain of their own blood type?!

[ILLMAS]

This is going to go down the drain just like the PTIN renewal fee, most of us do not get paid enough to put up with this 

[TaxmannEA]

I just talked to the PPL today and the IRS employee stated that there had been another data breech involving CAF files. She checked my information and informed me that my CAF number was not affected. Seems to me that our procedures are not the problem. 

[Abby Normal]

I guess I'm in the minority who doesn't mind verifying my Social Security number and birth date (which they already have) with the IRS to decrease the chance that someone is using my CAF to talk to the IRS.

[Jack from Ohio]

19 minutes ago, Abby Normal said:

I guess I'm in the minority who doesn't mind verifying my Social Security number and birth date (which they already have) with the IRS to decrease the chance that someone is using my CAF to talk to the IRS.

What about the questions dealing with the information on your personal tax forms?  Just because they choose not to hire proper people to take care of their security, we have to give up all this information?

[Gail in Virginia]

I received the following information from the Va Society of Enrolled Agents, as provided by IRS Stakeholder Liaison for our area:

Key IRS information for tax professionals

Message From Ley Mills, CSO - Stakeholder Liaison - Field   

 

Please read this IRS Message to the Tax Professional Community. It details how the IRS continues to review its procedures to better protect sensitive taxpayer data. As part of this effort, the IRS will request additional information from tax professionals who contact us through the Practitioner Priority Services or any toll-free IRS telephone number. We also strengthened protections for IRS e-Services and made updates to Forms 2848, Power of Attorney, and 8821, Tax Information Authorization.   These changes will require you to inform clients if you are using an Intermediate Service Provider to access client transcripts via the Transcript Delivery System. Please share this message with other tax practitioners that may find it beneficial to their business.

 

[Max W]

Looks like the only change made to 2848 was line 5a.  This was added - "Access my IRS records via an Intermediate Service Provider"

[Max W]

Twice I've gone through the new drill.  Fortunately, I didn't have clients sitting in front of me, which would have created an awkward situation.

NATP has taken an active response to the new requirements, with suggestions that hopefully the IRS will accept.

https://www.natptax.com/TaxKnowledgeCenter/GovernmentNews/Documents/PPS Issue Paper.pdf

 

[Medlin Software, Dennis]

To offer certain efile options with the IRS, one must provide personal information, even if the software creating and sending the file has zero responsibility for the information being reported.  They want to be able to dun the messenger.

[schirallicpa]

On ‎1‎/‎17‎/‎2018 at 5:02 PM, Max W said:

Twice I've gone through the new drill.  Fortunately, I didn't have clients sitting in front of me, which would have created an awkward situation.

NATP has taken an active response to the new requirements, with suggestions that hopefully the IRS will accept.

https://www.natptax.com/TaxKnowledgeCenter/GovernmentNews/Documents/PPS Issue Paper.pdf

 

I agree - that makes a very awkward situation when I have to give my DOB and SS#.  I don't use my SS# on the 2848, so that really bothered me that they asked me for that.  

Between all the due diligence crap and the IRS phone drill, I'm beginning to wonder if my license means anything at all.

[Lynn EA USTCP in Louisiana]

If the client were at my desk, I would hand the phone to the client so that he would give the IRS personnel permission to talk with me - no POA required at that time.

[Abby Normal]

On 1/10/2018 at 3:02 PM, Jack from Ohio said:

we have to give up all this information

Not 'give up', verify. They already have this info.

[michaelmars]

NCCPAP is fighting this too and expects changes very soon.