In IR-2024-136 the Internal Revenue Service issued on May 8, 2024 additional protections for tax professionals being taken to increase security for the Centralized Authorization File (CAF) program and placed new guidelines on requesting client transcripts by phone.
“Tax professionals continue to present a tempting target to identity thieves and fraudsters,” said IRS Return Integrity and Compliance Services Director James Clifford.
“With Identity Theft An Ongoing Concern, The IRS
Has Taken Additional Steps Needed To Protect Both
Tax Professionals And Their Clients Given The
Sensitivity And Importance Of The Information Involved.
The IRS will continue working with the tax professional community on these issues to minimize burden on practitioners while also working to ensure the safety and security of this information.”
Tax Practitioners may also receive CP310 assigning A Personal Identification Number (PIN), which the tax professional Needs to associate with their CAF. This can be done online.
The IRS has become increasingly concerned about the risk a compromised CAF number presents to tax professionals and taxpayers. In these cases, there is risk that fraudsters could use a compromised CAF to obtain transcripts and other sensitive taxpayer personally identifiable information (PII) to commit identity theft refund fraud and other crimes. In many cases, the fraudster has not only obtained a practitioner’s CAF number but also has the practitioner’s sensitive personal information.
To Address This Issue, The IRS Has A Process In Which Suspected Compromised CAF Numbers Are Placed Into
A Suspended Status Pending Further Review.
Once placed into a suspended status, the owner of the CAF number will be contacted to confirm if the CAF number has been compromised. If the compromise is confirmed, the IRS will take the appropriate actions to address the compromised CAF number. The IRS recognizes the significance of the CAF process and is continuously working on ways to expedite this review process for impacted practitioners.
More information about this issue can be found in a special alert issued today by the IRS Office of Professional Responsibility.
In addition to the changes being made to protect tax professionals from a compromised CAF number, the IRS has also taken related security steps to change how tax professionals can order transcripts by phone through the Transcript Delivery System (TDS).
To Address This Issue, The IRS Has A Process In
Which Suspected Compromised CAF Numbers Are
Placed Into A Suspended Status Pending Further Review.
That is not going to work well, as this week alone I waited one hour before I got complementary hang up, the second time called I waited two hours before I got a complementary hang up and if that wasn't bad enough I also got a call back, which when I picked it up hung up on me after two minutes.
IRS employees on other phone lines may not be authorized to provide transcripts through the SOR delivery method. Tax professionals will need to pass enhanced authentication. If the identity of the caller cannot be verified, transcripts will not be delivered using the SOR delivery method but will instead be mailed to the taxpayer’s address of record.
Tax professionals should also be on the lookout for unsolicited scam emails asking to provide credential information such as CAF number, Electronic Filing Identification Number (EFIN) information and driver’s license. These emails may look like they are coming from the IRS or a tax software company. Tax professionals who receive these unsolicited emails should report them to phishing@irs.gov.
Have an IRS Tax Problem?
Contact the Tax Lawyers at
www.TaxAid.com or www.OVDPLaw.com
or Toll Free at 888 8TAXAID (888-882-9243)
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