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IRS Return Disclosure Policy Is Troubling, Ayotte Says

MAY 7, 2015

IRS Return Disclosure Policy Is Troubling, Ayotte Says

DATED MAY 7, 2015
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May 7, 2015

 

 

WASHINGTON, D.C. -- U.S. Senator Kelly Ayotte (R-NH), this week sent a letter to Internal Revenue Service (IRS) Commissioner John Koskinen regarding the IRS' refusal to provide tax identity theft victims with copies of fraudulent tax returns filed in their names. Senator Ayotte wrote the letter with the intention of helping victims obtain copies of the fraudulent returns filed in their names so that the affected parties can determine what information was stolen in the identity theft.

"Tax-related identity theft victims have been through enough, and the least the IRS can do is to provide them with copies of their fraudulent returns so that they may secure their personal identity. While I understand that the agency has privacy concerns, victims deserve to know the extent of their identity theft, including what personal information has been compromised, in order to take action to protect themselves and their families," said Senator Ayotte.

Tax-related identity theft affects an increasingly alarming number of taxpayers every year -- between 2010 and 2013 tax-related identity theft increased from 440,581 incidents to 2.9 million incidents. The full text of the letter sent by Senator Ayotte to IRS Commissioner Koskinen is below:

 

* * * * *

 

 

The Honorable John Koskinen

 

Commissioner

 

Internal Revenue Service

 

U.S. Department of the Treasury

 

1111 Constitution Avenue NW

 

Washington, DC 20224

 

 

Dear Commissioner Koskinen,

I am writing to express my concern with the IRS' refusal to provide tax identity theft victims with copies of the fraudulent returns filed in their names. As you know, tax-related identity theft affects an increasingly alarming number of taxpayers every year -- between 2010 and 2013 tax-related identity theft increased from 440,581 incidents to 2.9 million incidents. But in addition to the significant financial and emotional hardship that identity theft imposes on honest taxpayers, I find it deeply troubling that the IRS does not help victims by providing them with copies of the fraudulent returns so that they may determine what information was stolen.

While I understand that the agency has privacy concerns, I am sure that you can appreciate that victims deserve to know the extent of their identity theft, including what personal information has been compromised, in order to take action to protect themselves and their families. In fact, January 2012 guidance from your Office of Chief Counsel states "[u]nder I.R.C. § 6103(e)(7), an identity theft victim may obtain from the Service a copy of the 'bad return' and other return information associated with the processing of the 'bad return' filed by the alleged identity thief."

I therefore respectfully request a response to the following questions:

 

1. Has anything changed since the January 2012 Office of Chief Counsel guidance that would prevent the IRS from providing tax identity theft victims with copies of the fraudulent returns filed in their names?

2. I.R.C. § 6103(e) states that the IRS may disclose an individual's tax return information to that individual, provided that disclosure would not impair federal tax administration. Does providing a tax identity theft victim with a copy of the fraudulent return impair federal tax administration?

3. If a fraudulent tax return contains private third-party information, could the IRS provide redacted copies to the tax identity theft victim?

4. Is legislative action needed to allow you to provide identity theft victims with copies of the fraudulent return? If so, please provide a detailed explanation.

 

Identity theft can cause problems for victims for years, and the IRS should do whatever it can to minimize this burden -- starting with providing tax identity theft victims with a copy of the fraudulent return.

Thank you for your attention to this issue and I look forward to your timely response.

Sincerely,

 

 

Kelly A. Ayotte

 

United States Senator
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