During a recent conference call that included representatives from TSCPA’s Relations with IRS Committee, the local IRS stakeholder liaison addressed how to obtain a client’s account transcript when the taxpayer is a victim of identity theft.
In order to reduce additional breach opportunities and secure taxpayer information, the Transcript Delivery System (TDS) no longer generates transcripts to requestors when there is an identity theft indicator on the account. The tax professional will receive the message, “Please have your client contact the Identity Protection Specialized Unit (IPSU) at 800-908-4490.” The client will receive an alert that a transcript request was attempted along with instructions to contact the IPSU. Tax professionals with a Power of Attorney (POA) may contact the IPSU for a transcript once their client receives the TDS letter and proper authentication is completed. For periods where no fraudulent return was filed, the preparer can contact the Practitioner Priority Service (PPS) at 866-860-4259 and assistors can issue the transcript.
The IRS is currently working on program changes to allow access to transcripts through TDS for tax years without an identity theft indicator.