Senators Introduce Bill to Prevent Tax Refund Theft
Senate Finance Committee’s leaders have announced two-party statute to increase security for taxpayers against fraudulent tax refund claims made with abducted individualities.
The standing member Senator Orrin Hatch, R-Utah and Ron Wyden, D-Ore., chairman of the Senate Finance Committee presented the Tax Refund Theft Prevention Act of 2014, S. 2736.
The objective of the bill is to assist the effected taxpayers of identity-theft and desires the IRS (Internal Revenue Service) to develop a new protection system used by taxpayers to secure the filling of their tax returns.
Orin Hatch said the bill intends to improve the IRS’s competences to identify fraud and to provide sufferers the support required to fix the loss done by tax theft criminals and to further discourage this offence; Hatch said we need to make this theft a particular category of felony offence and increase security for return fillers. Dedicated people of America are worth of a government that safeguards their tax money as well as their confidential taxpayer data.
Ron Wyden said that the core objective of the American Tax System is the protection of taxpayer and the Bill includes widespread solution based on common sense for this emerging crime and provide comfort to the mistreated people.
In order to enhance the IRS’s capability to recognize and avoid fraudulent refund claims the legislation places mandatory requirements on business as well as on paid tax preparers. For business it would be mandatory to present employee compensation as well as some non employee compensation to the authority and for tax practitioners it would be necessary to file income tax returns of individuals and most of the information returns electronically, furthermore the electronic filing requirement for practitioners filling 250 plus tax returns would be brought down to 20 tax returns over a period of three years.
Further the Treasury Department’s access to the National Directory of New Hires database would be increased to prevent fraudulent tax return filling.
A single contact person will be appointed for the sufferers of this fraud to rectifying their tax records. In addition to all this, many other security features have been added in the current system to enhance the protection of the taxpayer from this crime.