IRS Clarifies Transcript Fax Moratorium, Practitioners’ Options

IRS Statement

August 23, 2018 

The IRS on Tuesday announced it was making a change in the tax transcript format to better protect taxpayer data from identity thieves posing as taxpayer, tax preparers and other third parties. This new format, effective September 23, will redact certain personally identifiable information such as the SSN. Yesterday, we also gave tax professionals a preview of other proposed changes under consideration regarding the distribution of the transcript. In the December/January timeframe, we will mail transcripts to the address of record when a taxpayer or tax practitioner calls our toll-free line with a request, rather than fax to number provided by the caller.

A mailed transcript generally arrives within five to 10 business days. Tax professionals who want immediate access to client transcripts can use the Transcript Delivery Systems — one of the tools offered through e-Services. Tax professionals who are lawyers, CPAs or enrolled agents may register for e-Services without becoming Authorized IRS e-File Providers. However, if a tax professional is unenrolled, they must become an authorized IRS e-File Provider. Alternatively, a tax professional can assist their client in creating an IRS account and access Get Transcript Online for immediate access. We are providing advanced notice to practitioners to allow them time to register for e-Services or devise alternative methods of obtaining transcripts.

Currently, we fax a transcript when either a taxpayer or third party (such as a tax preparer) calls and successfully passes identity authentication and has proper authorization. However, because of the high number of data breaches, including the CAF numbers used by tax preparers, thieves have more and more victim data which can allow them to impersonate a taxpayer or tax professional.

In our conversation with tax professionals yesterday, we heard some very good suggestions. We will review their feedback on this and other ideas as part of our planning process.