Taxpayer information may be a risk of unauthorized disclosure and misuse when tax professionals electronically submit power of attorney forms (Form 2848), according to the Treasury Inspector General for Tax Administration.
By law, the IRS can generally disclose tax information only to a taxpayer or that taxpayer’s designee or attorney-in-fact. Taxpayers can authorize individuals to represent them and can authorize a designee or attorney-in-fact to receive confidential tax information. The IRS allows certain tax professionals to obtain tax transcripts for clients via the Internet using e-Services Online Tools.
The new TIGTA report concludes that controls are insufficient to ensure that tax professionals obtain a signed Form 2848 from their client before submitting it via e-Services Disclosure Authorization; that tax professionals use Form 2848 only for its intended purpose; and that only tax professional who can file a power of attorney electronically have access to disclosure authorization.
“I am troubled that the IRS allows tax professionals to electronically obtain powers of attorney without obtaining proper authorization,” said J. Russell George, Treasury Inspector General for Tax Administration. “The IRS risks unauthorized disclosures of taxpayer information when tax professionals obtain access to taxpayer data without a signed Form 2848. When tax professionals use Form 2848 for other than its intended purposes, they are circumventing IRS controls designed to protect taxpayer information.”
IRS officials agree with the intent of all but one of TIGTA’s recommendations and plan to improve internal controls for accessing and using e-Services. They did not agree that tax professionals are misusing e-Services, noting that the instructions on Form 2848 state that authorization of an eligible representative will allow the individual to receive and inspect confidential tax return data.
4 Comments
Finally called the "e-services help desk" and was told they were having a problem yesterday. I guess I find it to be interesting timing that the system went down just after this TIGTA report came out.
May I point out that TIGTA is NOT part of the IRS. They simply issue suggestions about improvements and changes with in the IRS.
I am going back onto irs.gov right now to see if this "problem" has been fixed.
Kate Harner, EA
P.S.: It's amazing how fast I became addicted to "e-services" - it has only existed for a couple of years, and now I can't live without it for only 1 day.
I do pity the poor non-credentialed preparers who have no access to it. I don't think security is a problem, because access is limited to licensed professionals.
Posted by: KATEHARNER | September 20, 2012 5:12 PM
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You can just about count on the fact that if the IRS has something that is helpful to tax pros and is working well they will find something wrong with it and change it to something impossible. They appear to to want to keep us from truly helping our clients. What a shame we can't work together instead of against each other.
Posted by: takingcare | September 20, 2012 9:56 AM
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I've been trying since 4pm to get an electronic 2848 to go through. It keeps telling me there's a "communication problem - try back later."
Is the IRS changing something yet again? I'm still getting used to the changes they made January 9.
I hope they fix this soon- I really need "e-services" to pull documents so I can represent before the IRS.
Since non-credentialed people don't have access to "e-services," I don't see a problem with security.
Kate Harner, EA
Posted by: KATEHARNER | September 19, 2012 8:15 PM
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Its also the IRS' fault for compelling us to e-file. The speed of these e-filing has allowed a number of folks to get refunds fraudulently. Like a couple of years back, when the IRS gave refunds for first time home buyers to felons. Also as recently, in Florida, the police busted folks who were getting refunds they were not entitled to or from fraudulent means. It used to be that when you used the post office, the less were incidences of fraud.
Posted by: gerardotax | September 18, 2012 3:39 PM
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