In Response to Ayotte, IRS Changes Identity Theft Policy

Press Release

In response to efforts by U.S. Senator Kelly Ayotte (R-NH) to help New Hampshire victims of tax-related identity theft, the IRS has agreed to change its policy and better assist victims by providing them with copies of fraudulent tax returns. On May 7, Ayotte wrote to IRS Commissioner John Koskinen and urged the agency to provide tax-related identity theft victims with copies of fraudulent returns, which the agency had refused to do, citing privacy concerns.

In a response to Ayotte on Thursday, Commissioner Koskinen wrote, "As a result of your letter, we have decided to change our policy regarding disclosure of fraudulent identity theft returns to victims whose name and SSN the fraudulent return was filed under...We will put together a procedure that will enable victims to receive, upon request, redacted copies of fraudulent returns filed in their name and SSN."

Ayotte said, "I'm glad that the IRS has agreed to my request to reverse its policy and provide identity theft victims with copies of fraudulent tax returns so they can take proper steps to secure their personal information. Victims of identity theft face significant emotional and financial hardships, and they shouldn't be left in the dark about the extent of the theft. This is a positive step that will help them protect themselves and their families."

Ayotte became aware of the issue after hearing from New Hampshire victims of identity theft who told her that the IRS' refusal to provide copies of fraudulent tax returns prevented them from knowing what information was stolen.

Earlier this month, Ayotte helped introduce the Social Security Identity Defense Act of 2015, which would require the Internal Revenue Service to notify potential victims of identity theft, something the agency has failed to do in the past. It also requires that the IRS notify law enforcement and that the Social Security Administration notify employers who submit fraudulently used Social Security numbers. The bill adds civil penalties and extends jail time for those who fraudulently use an individual's Social Security number.

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