TXCPA Committee Calls for IRS Reform to Improve Identity Theft Verification and Refund Processing
TXCPA’s Federal Tax Policy Committee urged the Treasury Department and IRS to streamline identity theft verification and limit refund freezes. The proposed reforms aim to reduce delays, protect vulnerable taxpayers and maintain strong fraud safeguards.
This week, TXCPA’s Federal Tax Policy Committee submitted a letter urging the Treasury Department and the Internal Revenue Service to adopt administrative reforms to improve identity theft verification procedures and refund hold practices. The committee recommends allowing authorized representatives, such as Powers of Attorney, to assist with ID verification and establishing a 365 day limit on refund freezes, citing significant processing delays and barriers that prevent many taxpayers – particularly vulnerable populations – from resolving cases and accessing legitimate refunds. The recommendations are designed to enhance taxpayer rights, improve administrative efficiency and maintain strong fraud protections.
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