Correction, 10/3/2024: This article has been updated to reflect the correct publication number for Special Publication 800-63-3. A previous version of the article incorrectly listed the citation as 863-3.
The IRS aims to refine how individuals and professionals access their information online and verify their identification as part of its modernization efforts, as agency officials say there are still gaps in access and awareness among taxpayer groups and practitioners that will be addressed in the development roadmap.
According to Angela Gartland, director of the IRS Office of Identity Assurance, the “next generation” of the digital identity platform was deployed last summer. Speaking September 27 at the American Bar Association Virtual Tax Meeting, Gartland said the new platform “expanded online offerings to taxpayers and tax pros in a secure manner that protects your confidential information while reducing burden on other non-digital channels.”
Fewer taxpayers sending paper mail, calling customer support phone lines, or venturing to an in-person Taxpayer Assistance Center reduces costs for the IRS while saving taxpayers time, she said.
“One of the key differences between our current digital identity solution and our prior legacy authentication platform … is that IRS has the ability to accept what we call federated credentials from a trusted credential service provider, or CSP,” Gartland explained.
Currently the IRS partners with ID.me as its CSP, but the agency still conducts “market research” on others that also comply with guidelines provided in the National Institute of Standards and Technology’s Special Publication 800-63-3, she clarified. Since the rollout of the new platform, 46 million individuals and professionals have obtained credentials from ID.me. Although the IRS’ usage of ID.me predates its digital initiatives, Gartland said that the agency consults with ID.me on expansions. So far, ID.me was made available to those with Individual Taxpayer Identification Numbers, or ITINs, and those living abroad.
Gartland emphasized that users only need one ID.me account to access online IRS tools like Individual Tax Account, Business Tax Account, Tax Pro Account, and e-Services for Tax Professionals. The same login credentials can be used with other partnering federal agencies such as the Social Security Administration and Department of Veterans Affairs. Further, ID.me credentials are acceptable for certain online applications, like those concerning the Foreign Tax Account Compliance Act, foreign financial institution registration, and qualified intermediaries.
To create an ID.me account, the following is required: 1) a Social Security number or ITIN; 2) an email address, 3) a government-issued ID; and 4) a device with a camera, which can be a smartphone. There are two options for new users to verify their identity. The first is a self-service process that takes about five to 10 minutes. Users need to upload a picture of themselves and supply biometric data with their photo ID. Alternatively, taxpayers can conduct a video chat with a representative.
Gartland affirmed that “selfies,” biometric data, and recordings of video chats collected during the verification process are protected and deleted within 24 hours, barring any red flags indicating fraud. Once verification is completed, users can access IRS accounts. Future work will focus on “demographics who have traditionally struggled to identity-proof with the IRS,” like first-time filers, non-English speakers, and individuals who “lack a financial footprint,” said Gartland.
At the same panel, Nadia Bazarov of the IRS Office of Online Services said she has noticed in her capacity as a project manager for Tax Pro Account that “not too many tax professionals” are aware of the tool’s existence and that the online features for individuals and businesses are more widely known.
Practitioners can use Tax Pro Account to submit Powers of Attorney (POA) or Tax Information Authorizations (TIA) requests, which are processed in real time. Tax Pro Account also is used for requesting Centralized Authorization File, or CAF, numbers and accessing client information. Users may view the status of a POA or TIA request or withdraw submissions.
Bazarov noted Tax Pro Account launched in 2021 and is still in its infancy, but will one day serve as a true one-stop shop for tax professionals to “act on behalf of your client” and manage authorizations, the agency hopes. She said the user interface of Tax Pro Account purposefully looks similar to how the same information would appear to an individual or business in their respective account, so long as the professional has the proper authorization on file.
“So for example, if your authorization is limited to certain tax matters and tax periods, you will not be able to see the entire account balance, but you will only be able to see it for the authorization that you have,” Bazarov explained. But “all of the data that is shown to the Tax Pro Account user looks exactly the same.”
Future enhancements to Tax Pro Account that are coming down will mirror “pretty much the majority” of new features in development for the individual and business accounts, said Bazarov. For example, practitioners will also be able to view refund and audit statuses. Tax Pro Account will “not be too far behind” in adding new features after they are available to taxpayers.
As far as what Tax Pro Account users can expect next, Bazarov announced that later this year, professionals will be able to make bank account payments for individuals. Another upcoming addition will be the ability to link and manage CAF access for those working for tax professional businesses.
Bazarov said the Tax Pro Account roadmap is “very extensive” and “a lot of cool features” are coming in fiscal years 2025, 2026, and beyond, “so stay tuned!”
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