The Internal Revenue Service is restructuring the framework of its Security Summit public-private partnership to fend off tax-related identity theft, setting up five new work groups and coordinating more closely with payroll providers whose information has become an increasing target for hackers.
The goal is to bolster protections and improve information sharing across the tax system. The Security Summit dates back over a decade and brings together the IRS and state tax authorities in partnership with tax software companies and tax professional organizations, but identity thieves keep finding new ways to access personal information. As the IRS and its partners in the Security Summit have strengthened their systems, identity thieves have turned to stealing underlying tax and financial information from taxpayers, businesses and tax professionals to file authentic-looking fraudulent returns in an effort to evade the traditional safeguards.
"The ongoing collaboration between the IRS and its Security Summit partners demonstrates the value of bringing private sector expertise and awareness to help improve how government works," said IRS CEO Frank Bisignano in a statement Monday. "For more than 10 years, both parties have benefited from this arrangement and will continue to do so into the future."
The new Security Summit structure will enhance the existing collaboration with payroll partners, whose wage and withholding data has become a growing target for cybercriminals. The five new work groups focus on improving early detection of suspicious activity, enhancing data protection practices and reducing the risk of compromised information used to facilitate fraud.
The new work groups include:
- Pre-Filing: Early identification of potentially fraudulent information returns and suspicious behavior within payroll and tax administration processes that could enable identity theft or fraud, including closer coordination with payroll providers.
- Forecasting: Identification of emerging schemes and proactive anticipation of threats before they are widely exploited.
- Preventing: Implementation of proactive measures and tools designed to reduce opportunities for fraud, including strengthening safeguards across payroll systems and data exchanges.
- Detecting and Reporting: Real-time identification of fraud indicators and enhanced intelligence-sharing among partners, including payroll industry stakeholders.
- Responding: Deployment of technical controls and coordinated operational responses to security incidents.
"Identity thieves continue to evolve, and so must we," said IRS return integrity and compliance services director Jim Clifford, who oversees the program, said in a statement. "By aligning our work across every stage of the tax lifecycle and strengthening collaboration with partners, including the payroll industry, we are better positioned to stop fraud earlier and protect taxpayers and the nation's revenue."
Along with the new work groups, the Security Summit also uses the Coalition Against Scam and Scheme Threats, whose members concentrate on quick assessment and response to time-sensitive threats.
