IRS RESPONSE TO RECOMMENDATION: The IRS agrees to implement TAS’s recommendation by building on efforts already underway. The IRS actively issues news alerts, social media content, and other communications in response to identified scams and schemes. IRS also has a large presence at the Nationwide Tax Forums where information on emerging scams is shared, and we encourage tax professionals to take steps to protect themselves and their clients. Return Integrity Compliance Services (RICS) and Communications & Liaison (C&L) collaborate regularly on communication efforts to deliver a multitude of communications that deter misinformation, scams, and improper claims. Further, like the ghost preparer strategy, the Frivolous Return Program offers taxpayers that may have been swayed by social media misinformation the opportunity to self-correct their tax returns to gain alignment with IRS requirements. Frivolous filer penalties are asserted to change taxpayer behavior, dissuading them from relying on elicit advice.

CORRECTIVE ACTION: The IRS agrees to implement TAS’s recommendation by building on efforts already underway.

TAS RESPONSE: TAS commends the IRS’s efforts to protect taxpayers from ghost preparers and other threats. Taxpayers face many types of harmful risks that can cause financial loss, emotional distress, and prolonged uncertainty. The IRS is encouraged to continue testing new strategies to better protect taxpayers from harm.

ADOPTED, PARTIALLY ADOPTED or NOT ADOPTED: Adopted

OPEN or CLOSED: Open

DUE DATE FOR ACTION (if left open): 09/30/2026

IRS RESPONSE TO RECOMMENDATION: We look forward to continuing to work with TAS to better protect taxpayers by building on our collaborative efforts. We plan to partner with TAS in anti-fraud educational initiatives and efforts.

CORRECTIVE ACTION: We look forward to continuing to work with TAS to better protect taxpayers by building on our collaborative efforts. We plan to partner with TAS in anti-fraud educational initiatives and efforts.

TAS RESPONSE:TAS appreciates the IRS’s willingness to collaborate on anti-fraud educational initiatives and efforts.

ADOPTED, PARTIALLY ADOPTED or NOT ADOPTED: Adopted

OPEN or CLOSED: Open

DUE DATE FOR ACTION (if left open): 09/30/2026

IRS RESPONSE TO RECOMMENDATION: The IRS already works closely with a broad network of strong partnerships with key stakeholder groups to advance IRS’s outreach, education and compliance goals. These partners – tax professionals, the payroll industry, software providers, small business and tax industry providers and community-facing organizations – play a critical role in extending the IRS’s reach, enhancing public trust and supporting taxpayer services. Ongoing engagement with these communities ensures the agency remains responsive to practitioner needs, promotes voluntary compliance and helps deliver timely, accurate information to taxpayers across diverse channels. The IRS regularly and proactively creates materials and content for external partners to distribute across their networks, customers and members. IRS Outreach staff will explore opportunities to connect with the tax pro community, small business advocates and social media influencers in the tax community to develop a social media strategy.

​CORRECTIVE ACTION: IRS Outreach staff will explore opportunities to connect with the tax pro community, small business advocates and social media influencers in the tax community to develop a social media strategy.

TAS RESPONSE:TAS commends the IRS’s efforts to maintain a broad partnership network to help expand its reach to more taxpayers. TAS encourages the IRS to continuously explore opportunities to improve its social media strategy. Taxpayers face an abundance of risks that are amplified on social media, including tax misinformation that is inaccurate, incomplete, or misleading. The IRS should work with its partners to develop a strategy to overcome its inherent social media limitations by leveraging the strengths of its partners to timely inform taxpayers about tax misinformation on social media platforms.

ADOPTED, PARTIALLY ADOPTED or NOT ADOPTED: Partially Adopted

OPEN or CLOSED: Open

DUE DATE FOR ACTION (if left open): Ongoing

IRS RESPONSE TO RECOMMENDATION: The IRS is initiating an effort to evaluate the fraud risks driven by the EIN issuance process and will include TAS representation in that effort. The IRS will issue a report by September 30, 2026, on the feasibility of establishing employer identity verification and EIN monitoring protections that do not increase burden on compliant businesses. Also, we are updating the structure of the Security Summit to include the payroll industry, and are continuing to engage the Social Security Administration to help combat the rising incidence of fraudulent information returns.

Currently, the IRS receives electronic Forms W-2 and Forms 1099 through multiple channels, including the Information Returns Intake System (IRIS) for certain Forms 1099. The IRIS platform incorporates authentication, validation, and error-checking processes designed to improve data accuracy and detect potential anomalies. Additionally, information returns are subject to existing systemic checks and filters to identify patterns indicative of fraud or misuse.

The IRS will consider opportunities to strengthen authentication requirements for electronic submissions and explore the feasibility of voluntary protection tools, such as usage alerts, employer-controlled locks, or an EIN equivalent to an Identity Protection Personal Identification Number (IP PIN), while ensuring such measures do not impose undue burden on legitimate filers.

The IRS will also continue collaboration with partners, including the Security Summit (which is expanding to include the payroll industry) and the Social Security Administration (SSA), to address risks associated with fraudulent information returns.

CORRECTIVE ACTION: The IRS is initiating an effort to evaluate the fraud risks driven by the EIN issuance process and will include TAS representation in that effort. The IRS will issue a report by September 30, 2026, on the feasibility of establishing employer identity verification and EIN monitoring protections that do not increase burden on compliant businesses. Also, we are updating the structure of the Security Summit to include the payroll industry, and are continuing to engage the Social Security Administration to help combat the rising incidence of fraudulent information returns.

The IRS will consider opportunities to strengthen authentication requirements for electronic submissions and explore the feasibility of voluntary protection tools, such as usage alerts, employer-controlled locks, or an EIN equivalent to an Identity Protection Personal Identification Number (IP PIN), while ensuring such measures do not impose undue burden on legitimate filers.

The IRS will also continue collaboration with partners, including the Security Summit (which is expanding to include the payroll industry) and the Social Security Administration (SSA), to address risks associated with fraudulent information returns.

TAS RESPONSE:TAS appreciates the IRS’s commitment to fully implement this important recommendation.

ADOPTED, PARTIALLY ADOPTED or NOT ADOPTED: Adopted

OPEN or CLOSED: Open

DUE DATE FOR ACTION (if left open): 09/30/2026

IRS RESPONSE TO RECOMMENDATION: The IRS recognizes that improving tax literacy and reducing the impact of tax misinformation, particularly in the social media environment, requires collaboration beyond the agency. The IRS will consider expanding and strengthening partnerships with external stakeholders, such as state tax agencies, tax software providers, financial institutions, professional associations, educational institutions, and community-based organizations, to develop coordinated strategies that promote accurate tax information and improve taxpayer understanding. Building on existing collaborative models, such as the Security Summit and other public-private initiatives, the IRS will work with partners to amplify accurate messaging, increase outreach through trusted networks, and leverage external platforms to more effectively counter misinformation and educate taxpayers.

The IRS will also continue to coordinate internally to support these external efforts, ensuring consistent, clear, and accessible information is disseminated through multiple channels to reach multiple taxpayer populations.

CORRECTIVE ACTION: The IRS will consider expanding and strengthening partnerships with external stakeholders, such as state tax agencies, tax software providers, financial institutions, professional associations, educational institutions, and community-based organizations, to develop coordinated strategies that promote accurate tax information and improve taxpayer understanding. Building on existing collaborative models, such as the Security Summit and other public-private initiatives, the IRS will work with partners to amplify accurate messaging, increase outreach through trusted networks, and leverage external platforms to more effectively counter misinformation and educate taxpayers.

The IRS will also continue to coordinate internally to support these external efforts, ensuring consistent, clear, and accessible information is disseminated through multiple channels to reach multiple taxpayer populations.

TAS RESPONSE: TAS appreciates the IRS’s recognition that tax literacy requires significant collaboration. Coordinating a plan for these efforts can help the IRS create greater awareness, educate, inform, and protect taxpayers.

ADOPTED, PARTIALLY ADOPTED or NOT ADOPTED: Partially Adopted

OPEN or CLOSED: Open

DUE DATE FOR ACTION (if left open): Ongoing