The New Security Tax Practices for IRS and Software Makers

IRS, state tax agencies and industry partners have come up with plans to improve identity theft protection in 2017. These government bodies have carried the decisions after making important inroads against the fraudulent returns. 

Individuals and taxpayers will become able to take advantages of these new plans. The leaders of private and public sectors have announced that their collective efforts have led to a significant improvement against the prevalent issue of identity theft.

Every year, large number individuals become the victims of identity theft. According to a recent survey, stolen identities have fallen by 50 percent in comparison to a year ago. Individuals, now, feel safe while filing their returns and fulfilling the formalities.

During the press conference in Washington, the summit leaders explained new and expanded safeguards for taxpayers in upcoming year i.e. 2017. The tax season in 2017 will bring more safety benefits and help ensure the authenticity of the taxpayers and tax return.

The IRS commissioner said “Our team has succeeded to make remarkable progress in order to protect taxpayers. Working together, the coalition has expanded the activities in many areas. We are constantly focusing on strengthening our system and processes for upcoming season.

The key IRS statics had dramatic impact on collective ability to recognize and prevalent fraudulent returns. This simply means less bad returns, fewer bad refunds and less risks of becoming the victims. Below are a few examples or the transformation traced by the Internal Revenue Service-

• The number of identity thefts dropped 50 percent during the first nine months of 2016. Means, less people with the claim of identity theft. Number of new affidavits filed fell to 237,750 compared to 512, 278  
• Quite a large number of fraudulent returns stopped before they started 
• The number of bank partners grew to a great extent for numerous institutions enabling constantly improving internal process. Countless  suspect refunds stopped by the banks and also returned to the Internal Revenue Service more than 50%    
• Both the industry and state partners provided information. This information helped the main body to improve fraud filters and stop other bad tax returns.

Apart from these, many more steps are left to be taken to improve entire tax process during this year. Various new data elements would be added to offer additional information for authentication purpose.

The tax industry will share 32 data elements with IRS and states. The software industry is likely to adopt more technological elements to improved software password requirements. Individuals and tax professional users would be able to make more profits with additional safety aspect.

The software like Drake tax will help the users to protect the tax information protected within high-tech safety environment.

At the same time drake tax hosting services or drake tax cloud hosting solution will emerge up with more technical advancement. Not only drake tax software, other tax solution like Turbo Tax, Ultra tax, Lacerte tax, ProSeries tax etc. will make similar contribution towards safer and more secure process of tax return.