With the fall quickly approaching, it is again the time of year for Tax Preparers and Electric Return Originators (EROs) to prepare for the 2017 tax season. Tax professionals increasingly work with their clients on a remote basis (vs. In-Person Transactions), and this shift brings additional requirements for these tax professionals to remain compliant with IRS requirements.
IRS Publication 1345 provides guidance for Providers of Individual Tax Returns, including EROs, to maintain compliance with the IRS e-file rules and requirements. Providers with problems involving fraud and abuse may be suspended or expelled from participation in IRS e-file, be assessed civil and preparer penalties or be subject to legal action.
Among the requirements listed is a requirement for EROs to “Verify that the name, social security number, address, date of birth and other personal information on record are consistent with the information provided through record checks with the applicable agency or institution or through credit bureaus or similar databases.” This requirement is listed as option for in-person transactions, but is required for remote transactions.
EROs that previously performed the majority of their transactions in person may not have the systems and structure in place to meet this requirement. For providers that may not currently support remote transactions for this reason, making a change to allow these transactions could have a significant impact on customer acquisition and retention.
IdentiFraud Consumer+ offers a simple way to meet this requirement manually through the IdentiFlo Management Portal, or integrated into existing system using the available Web Services API. The solution is cost effective for businesses of all sizes, and can be implemented quickly to support the upcoming tax season.