Identity Theft—New Procedures for Small Business Identity Theft Protection:

News from RWHSG

Identity Theft—New Procedures for Small Business Identity Theft Protection:

Posted by Kim Chen on January 5th, 2018

In addition to individuals, businesses are increasingly becoming victims of identity theft. The IRS has acknowledged that fraudulent tax return filings for small businesses have sharply increased. These false returns affect corporate, partnership, estate, and trust filers. In a tax tip, the IRS describes new procedures to protect businesses from identity theft. These new procedures for 2018 were developed to help verify if a return is legitimate. Tax preparation software for business tax returns will ask additional questions related to: (1) the person authorized to sign the return, (2) payment history, (3) parent company information, (4) past deductions, and (5) filing history. The IRS believes that these new measures can help validate returns in advance. For more information on identity theft protection, prevention, and detection, the IRS has provided various links in the tax tip. IRS Tax Tip 2017-86.