Internal Revenue Service: Difference between revisions

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According to an inspector general's report, released in November 2013, identity theft in the United States is blamed for $4{{spaces}}billion worth of fraudulent 2012 tax refunds by the IRS. Fraudulent claims were made with the use of stolen taxpayer identification and Social Security numbers, with returns sent to addresses both in the US and internationally. Following the release of the findings, the IRS stated that it resolved most of the identity theft cases of 2013 within 120 days, while the average time to resolve cases from the 2011/2012 tax period was 312 days.<ref>{{cite news|title=IRS refunded $4 billion to identity thieves last year, inspector general's report says|url=https://www.cbsnews.com/news/irs-refunded-4-billion-to-identity-thieves-last-year-inspector-generals-report-says/|access-date=November 10, 2013|publisher=CBS News|date=November 7, 2013}}</ref><ref name="Fox News">{{cite web|url=https://www.foxnews.com/politics/irs-chief-warns-of-refund-delays-poor-customer-service-this-tax-year/|title=IRS chief warns of refund delays, poor customer service this tax year|publisher=Fox News|date=January 15, 2015}}</ref>
According to an inspector general's report, released in November 2013, identity theft in the United States is blamed for $4{{spaces}}billion worth of fraudulent 2012 tax refunds by the IRS. Fraudulent claims were made with the use of stolen taxpayer identification and Social Security numbers, with returns sent to addresses both in the US and internationally. Following the release of the findings, the IRS stated that it resolved most of the identity theft cases of 2013 within 120 days, while the average time to resolve cases from the 2011/2012 tax period was 312 days.<ref>{{cite news|title=IRS refunded $4 billion to identity thieves last year, inspector general's report says|url=https://www.cbsnews.com/news/irs-refunded-4-billion-to-identity-thieves-last-year-inspector-generals-report-says/|access-date=November 10, 2013|publisher=CBS News|date=November 7, 2013}}</ref><ref name="Fox News">{{cite web|url=https://www.foxnews.com/politics/irs-chief-warns-of-refund-delays-poor-customer-service-this-tax-year/|title=IRS chief warns of refund delays, poor customer service this tax year|publisher=Fox News|date=January 15, 2015}}</ref>


In September 2014, IRS Commissioner [[John Koskinen]] expressed concern over the organization's ability to handle [[Patient Protection and Affordable Care Act|Obamacare]] and administer [[premium tax credit]]s that help people pay for health plans from the health law's insurance exchanges. It will also enforce the law's [[Individual shared responsibility provision|individual mandate]], which requires most Americans to hold health insurance.<ref>{{cite web|last1=Howell|first1=Tom|title=Bipartisan doubts emerge on IRS ability to handle Obamacare |website=[[The Washington Times]]|url=http://www.washingtontimes.com/news/2014/sep/10/irs-cant-escape-lerner-scandals-obamacare-hearing/|access-date=September 11, 2014}}</ref> In January 2015, [[Fox News]] obtained an email which predicted a messy tax season on several fronts. The email was sent by IRS Commissioner Koskinen to workers. Koskinen predicted the IRS would shut down operations for two days later that year which would result in unpaid [[furlough]]s for employees and [[Fan service|service cuts]] for [[taxpayer]]s. Koskinen also said delays to [[IT]] investments of more than $200{{spaces}}million may delay new taxpayer protections against [[Identity theft in the United States|identity theft]].<ref name="Fox News" /> Also in January 2015, the editorial board of ''[[The New York Times]]'' called the IRS budget cuts penny-wise-and-pound-foolish, where for every dollar of cuts in the budget, six were lost in tax revenue.<ref>{{cite news |url=https://www.nytimes.com/2015/01/18/opinion/sunday/irs-already-hobbled-likely-to-be-further-damaged.html |title=The Dangerous Erosion of Taxation |author=The Editorial Board |date=January 17, 2015 |work=[[The New York Times]] |access-date=March 6, 2017}}</ref>
In September 2014, IRS Commissioner [[John Koskinen]] expressed concern over the organization's ability to handle [[Patient Protection and Affordable Care Act|Obamacare]] and administer [[premium tax credit]]s that help people pay for health plans from the health law's insurance exchanges. It will also enforce the law's [[Individual shared responsibility provision|individual mandate]], which requires most Americans to hold health insurance.<ref>{{cite web|last1=Howell|first1=Tom|title=Bipartisan doubts emerge on IRS ability to handle Obamacare |website=[[The Washington Times]]|url=http://www.washingtontimes.com/news/2014/sep/10/irs-cant-escape-lerner-scandals-obamacare-hearing/|access-date=September 11, 2014}}</ref> In January 2015, [[Fox News]] obtained an email which predicted a messy tax season on several fronts. The email was sent by IRS Commissioner Koskinen to workers. Koskinen predicted the IRS would shut down operations for two days later that year which would result in unpaid [[furlough]]s for employees and [[Fan service|service cuts]] for [[taxpayer]]s. Koskinen also said delays to [[IT]] investments of more than $200{{spaces}}million may delay new taxpayer protections against [[Identity theft in the United States|identity theft]].<ref name="Fox News" /> Also in January 2015, the editorial board of ''The New York Times'' called the IRS budget cuts penny-wise-and-pound-foolish, where for every dollar of cuts in the budget, six were lost in tax revenue.<ref>{{cite news |url=https://www.nytimes.com/2015/01/18/opinion/sunday/irs-already-hobbled-likely-to-be-further-damaged.html |title=The Dangerous Erosion of Taxation |author=The Editorial Board |date=January 17, 2015 |work=The New York Times |access-date=March 6, 2017}}</ref>


A 2020 Treasury Department audit found the IRS had improved its [[Identity verification service|identity verification]] system offerings for taxpayers, but was still behind in fully meeting digital identity requirements.<ref name="Treasury-2022">{{cite web |title=While Progress Is Being Made on Digital Identity Requirements, Completion Dates to Achieve Compliance With Identity Proofing Standards Have Not Been Established |url=https://www.treasury.gov/tigta/auditreports/2020reports/202020012fr.pdf |website=www.treasury.gov |publisher=US Treasury Inspector General for Tax Administration |access-date=17 October 2022}}</ref> The following year, the IRS announced a new login and ID verification process for several of its online tools, including general account access, Identity Protection (IP) [[Personal identification number|PIN]] setup, and payment plan applications.<ref name="IRS ID 2021">{{cite web | title=New identity verification process to access certain IRS online tools and services | website=Internal Revenue Service | date=2021-11-17 | url=https://www.irs.gov/newsroom/new-identity-verification-process-to-access-certain-irs-online-tools-and-services | access-date=2022-10-17}}</ref><ref name="SADI 2022">{{cite web | last=Houston | first=Chamille | title=Tax Tip: Verifying your identity to access certain IRS systems | website=Taxpayer Advocate Service | date=2022-01-19 | url=https://www.taxpayeradvocate.irs.gov/news/tas-tax-tip-verifying-your-identity-to-access-certain-irs-systems/ | access-date=2022-10-17}}</ref> As part of the agency's Identity, Credential, and Access Management (ICAM) initiative, the process included the use of third-party [[Facial recognition system|facial recognition technologies]] to confirm taxpayer identities. The facial recognition requirement was dropped in 2022, however, following privacy concerns from government officials and the public.<ref name="IRS-Face-ID-2022">{{cite web | title=IRS announces transition away from use of third-party verification involving facial recognition | website=Internal Revenue Service | date=2022-02-07 | url=https://www.irs.gov/newsroom/irs-announces-transition-away-from-use-of-third-party-verification-involving-facial-recognition | access-date=2022-10-17}}</ref> Alternative ID verification options have since been introduced with the goal of making IRS online tools accessible to more people.<ref>{{cite news |last1=Singletary |first1=Michelle |title=Despite privacy concerns, ID.me nearly doubled the number of people able to create an IRS account |url=https://www.washingtonpost.com/business/2022/02/25/irs-idme-account-success-rate/ |access-date=17 October 2022 |newspaper=The Washington Post |date=25 February 2022}}</ref>
A 2020 Treasury Department audit found the IRS had improved its [[Identity verification service|identity verification]] system offerings for taxpayers, but was still behind in fully meeting digital identity requirements.<ref name="Treasury-2022">{{cite web |title=While Progress Is Being Made on Digital Identity Requirements, Completion Dates to Achieve Compliance With Identity Proofing Standards Have Not Been Established |url=https://www.treasury.gov/tigta/auditreports/2020reports/202020012fr.pdf |website=www.treasury.gov |publisher=US Treasury Inspector General for Tax Administration |access-date=17 October 2022}}</ref> The following year, the IRS announced a new login and ID verification process for several of its online tools, including general account access, Identity Protection (IP) [[Personal identification number|PIN]] setup, and payment plan applications.<ref name="IRS ID 2021">{{cite web | title=New identity verification process to access certain IRS online tools and services | website=Internal Revenue Service | date=2021-11-17 | url=https://www.irs.gov/newsroom/new-identity-verification-process-to-access-certain-irs-online-tools-and-services | access-date=2022-10-17}}</ref><ref name="SADI 2022">{{cite web | last=Houston | first=Chamille | title=Tax Tip: Verifying your identity to access certain IRS systems | website=Taxpayer Advocate Service | date=2022-01-19 | url=https://www.taxpayeradvocate.irs.gov/news/tas-tax-tip-verifying-your-identity-to-access-certain-irs-systems/ | access-date=2022-10-17}}</ref> As part of the agency's Identity, Credential, and Access Management (ICAM) initiative, the process included the use of third-party [[Facial recognition system|facial recognition technologies]] to confirm taxpayer identities. The facial recognition requirement was dropped in 2022, however, following privacy concerns from government officials and the public.<ref name="IRS-Face-ID-2022">{{cite web | title=IRS announces transition away from use of third-party verification involving facial recognition | website=Internal Revenue Service | date=2022-02-07 | url=https://www.irs.gov/newsroom/irs-announces-transition-away-from-use-of-third-party-verification-involving-facial-recognition | access-date=2022-10-17}}</ref> Alternative ID verification options have since been introduced with the goal of making IRS online tools accessible to more people.<ref>{{cite news |last1=Singletary |first1=Michelle |title=Despite privacy concerns, ID.me nearly doubled the number of people able to create an IRS account |url=https://www.washingtonpost.com/business/2022/02/25/irs-idme-account-success-rate/ |access-date=17 October 2022 |newspaper=The Washington Post |date=25 February 2022}}</ref>
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In March 2009, the IRS announced that it would no longer outsource the collection of taxpayers debts to private debt collection agencies. The IRS decided not to renew contracts to private debt collection agencies and began a hiring program at its call sites and processing centers across the country to bring on more personnel to process collections internally from taxpayers.<ref>[https://www.irs.gov/uac/IRS-Conducts-Extensive-Review,-Decides-Not-to-Renew-Private-Debt-Collection-Contracts "IRS Conducts Extensive Review, Decides Not to Renew Private Debt Collection Contracts"] {{Webarchive|url=https://web.archive.org/web/20160128123133/https://www.irs.gov/uac/IRS-Conducts-Extensive-Review,-Decides-Not-to-Renew-Private-Debt-Collection-Contracts |date=January 28, 2016 }}</ref> As of October 2009, the IRS has ceased using private debt collection agencies.
In March 2009, the IRS announced that it would no longer outsource the collection of taxpayers debts to private debt collection agencies. The IRS decided not to renew contracts to private debt collection agencies and began a hiring program at its call sites and processing centers across the country to bring on more personnel to process collections internally from taxpayers.<ref>[https://www.irs.gov/uac/IRS-Conducts-Extensive-Review,-Decides-Not-to-Renew-Private-Debt-Collection-Contracts "IRS Conducts Extensive Review, Decides Not to Renew Private Debt Collection Contracts"] {{Webarchive|url=https://web.archive.org/web/20160128123133/https://www.irs.gov/uac/IRS-Conducts-Extensive-Review,-Decides-Not-to-Renew-Private-Debt-Collection-Contracts |date=January 28, 2016 }}</ref> As of October 2009, the IRS has ceased using private debt collection agencies.


In September 2009, after [[ACORN 2009 undercover videos controversy|undercover exposé videos]] of questionable activities by staff of one of the IRS's volunteer tax-assistance organizations were made public, the IRS removed [[Association of Community Organizations for Reform Now|ACORN]] from its volunteer tax-assistance program.<ref>Wheaton, Sarah (September 23, 2008). [https://www.nytimes.com/2009/09/24/us/politics/24acorn.html "Acorn Sues Over Video as I.R.S. Severs Ties"]. ''[[The New York Times]]''.</ref>
In September 2009, after [[ACORN 2009 undercover videos controversy|undercover exposé videos]] of questionable activities by staff of one of the IRS's volunteer tax-assistance organizations were made public, the IRS removed [[Association of Community Organizations for Reform Now|ACORN]] from its volunteer tax-assistance program.<ref>Wheaton, Sarah (September 23, 2008). [https://www.nytimes.com/2009/09/24/us/politics/24acorn.html "Acorn Sues Over Video as I.R.S. Severs Ties"]. ''The New York Times''.</ref>


==Administrative functions==
==Administrative functions==
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In 2004, the law licenses of two former IRS lawyers were suspended after a federal court ruled that they defrauded the courts so the IRS could win a sum in tax shelter cases.<ref>{{Cite news|url=https://www.nytimes.com/2004/08/21/business/2-ex-irs-lawyers-licenses-suspended-for-misconduct.html|title=2 Ex-I.R.S. Lawyers' Licenses Suspended for Misconduct|last=Johnston|first=David Cay|date=2004-08-21|work=The New York Times|access-date=2017-11-16|language=en-US|issn=0362-4331}}</ref>
In 2004, the law licenses of two former IRS lawyers were suspended after a federal court ruled that they defrauded the courts so the IRS could win a sum in tax shelter cases.<ref>{{Cite news|url=https://www.nytimes.com/2004/08/21/business/2-ex-irs-lawyers-licenses-suspended-for-misconduct.html|title=2 Ex-I.R.S. Lawyers' Licenses Suspended for Misconduct|last=Johnston|first=David Cay|date=2004-08-21|work=The New York Times|access-date=2017-11-16|language=en-US|issn=0362-4331}}</ref>


In 2013, the Internal Revenue Service became embroiled in a [[IRS targeting controversy|political scandal]] in which it was discovered that the agency subjected [[Conservatism in the United States|conservative]] or conservative-sounding groups filing for tax-exempt status to extra scrutiny,<ref name="washingtonpost1">{{cite news|url=https://www.washingtonpost.com/politics/obama-denounces-reported-irs-targeting-of-conservative-groups/2013/05/13/a0185644-bbdf-11e2-97d4-a479289a31f9_print.html |title=IRS officials in Washington were involved in targeting of conservative groups |newspaper=The Washington Post |access-date=May 15, 2013}}</ref> though liberal groups were also targeted.<ref>{{cite news |url=https://www.nytimes.com/2017/10/26/us/politics/irs-tea-party-lawsuit-settlement.html |title=Justice Department Settles With Tea Party Groups After I.R.S. Scrutiny |last=Cochrane |first=Emily |date=October 26, 2017 |work=[[The New York Times]] |access-date=June 1, 2023}}</ref>
In 2013, the Internal Revenue Service became embroiled in a [[IRS targeting controversy|political scandal]] in which it was discovered that the agency subjected [[Conservatism in the United States|conservative]] or conservative-sounding groups filing for tax-exempt status to extra scrutiny,<ref name="washingtonpost1">{{cite news|url=https://www.washingtonpost.com/politics/obama-denounces-reported-irs-targeting-of-conservative-groups/2013/05/13/a0185644-bbdf-11e2-97d4-a479289a31f9_print.html |title=IRS officials in Washington were involved in targeting of conservative groups |newspaper=The Washington Post |access-date=May 15, 2013}}</ref> though liberal groups were also targeted.<ref>{{cite news |url=https://www.nytimes.com/2017/10/26/us/politics/irs-tea-party-lawsuit-settlement.html |title=Justice Department Settles With Tea Party Groups After I.R.S. Scrutiny |last=Cochrane |first=Emily |date=October 26, 2017 |work=The New York Times |access-date=June 1, 2023}}</ref>


On September 5, 2014, 16 months after the scandal first erupted, a Senate Subcommittee released a report that confirmed that Internal Revenue Service used inappropriate criteria to target Tea Party groups, but found no evidence of political bias.<ref>{{cite web|last1=Korte|first1=Gregory|title=Senate subcommittee: No political bias in IRS targeting|website=[[USA Today]]|url=https://www.usatoday.com/story/news/politics/2014/09/05/senate-subcommittee-report-on-irs-tea-party-targeting/15130715/|access-date=September 10, 2014}}</ref> The chairman of the Senate Permanent Subcommittee on Investigations confirmed that while the actions were "inappropriate, intrusive, and burdensome", the Democrats have often experienced similar treatment.<ref>{{cite web|last1=The Permanent Subcommittee On Investigations|title=RS and TIGTA Management Failures Related to 501(c)(4) Applicants Engaged in Campaign Activity|url=https://www.documentcloud.org/documents/1283995-report-irs-amp-tigta-mgmt-failures-related-to.html|access-date=September 10, 2014}}</ref> Republicans noted that 83% of the groups being held up by the IRS were right-leaning; and the Subcommittee Minority staff, which did not join the Majority staff report, filed a dissenting report entitled, "IRS Targeting Tea Party Groups".<ref>{{cite web|last1=The Subcommittee Minority|title=IRS Targeting Tea Party Groups|url=http://www.mccain.senate.gov/public/_cache/files/8dd561cf-d44b-469d-9657-ddf428778cf5/psi-report---irs-tigta-mgmt-failures-related-to-501-c-4---minority-dissenting-views.pdf|access-date=September 10, 2014}}</ref>
On September 5, 2014, 16 months after the scandal first erupted, a Senate Subcommittee released a report that confirmed that Internal Revenue Service used inappropriate criteria to target Tea Party groups, but found no evidence of political bias.<ref>{{cite web|last1=Korte|first1=Gregory|title=Senate subcommittee: No political bias in IRS targeting|website=[[USA Today]]|url=https://www.usatoday.com/story/news/politics/2014/09/05/senate-subcommittee-report-on-irs-tea-party-targeting/15130715/|access-date=September 10, 2014}}</ref> The chairman of the Senate Permanent Subcommittee on Investigations confirmed that while the actions were "inappropriate, intrusive, and burdensome", the Democrats have often experienced similar treatment.<ref>{{cite web|last1=The Permanent Subcommittee On Investigations|title=RS and TIGTA Management Failures Related to 501(c)(4) Applicants Engaged in Campaign Activity|url=https://www.documentcloud.org/documents/1283995-report-irs-amp-tigta-mgmt-failures-related-to.html|access-date=September 10, 2014}}</ref> Republicans noted that 83% of the groups being held up by the IRS were right-leaning; and the Subcommittee Minority staff, which did not join the Majority staff report, filed a dissenting report entitled, "IRS Targeting Tea Party Groups".<ref>{{cite web|last1=The Subcommittee Minority|title=IRS Targeting Tea Party Groups|url=http://www.mccain.senate.gov/public/_cache/files/8dd561cf-d44b-469d-9657-ddf428778cf5/psi-report---irs-tigta-mgmt-failures-related-to-501-c-4---minority-dissenting-views.pdf|access-date=September 10, 2014}}</ref>