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Additional Actions Are Needed to Improve and Secure the Income Verification Express Service Program

Report Information

Date Issued
Report Number
2023-45-014
Report Type
Audit
Special Emphasis
Taxpayer First Act (TFA)
Joint Report
No
Agency Wide
Yes (agency-wide)
Questioned Costs
$0
Funds for Better Use
$0

Recommendations

In March 2022, we notified IRS management of our concern that information on its website needed to be updated. For example, the forms used to apply to the IVES Program and submit transcript requests were outdated, the website did not reflect recent changes that were made to the IVES Program (e.g., the closure of the Fresno Tax Processing Center), and there was no information related to the compliance requirements for the IVES Program. We recommended that management review and update public information on IRS.gov and ensure that information is available to prospective IVES applicants on the requirements of participants, such as compliance reviews and required e-signature audits.

The Chief Information Officer should ensure that the business transcript request capability is implemented as soon after the January 2023 legislative deadline as possible.

Complete a usage study and document a decision regarding if the IRS will mandate that participants use the TFA IVES system.

Implement controls that will sufficiently and adequately authenticate all transcript requests received via e-fax. For example, require notarization of a taxpayer’s signature.

Implement processes that would notify taxpayers that a transcript request form had been processed, giving the taxpayer an opportunity to quickly identify potential unauthorized access of their tax return data. For example, the IRS could systemically send a copy of the transcript request form to the last known address of the taxpayer, allowing the taxpayer to verify their signature.