ICYMI:TDS AUTHORIZATION CHANGE

As part of the IRS’ effort to continue combatting identity theft and protecting taxpayers’ personal information, we’re making changes that will impact how tax professionals receive transcripts.

Beginning April 8, 2024, tax professionals must call the Practitioner Priority Service (PPS) to request transcripts to be deposited into their Secure Object Repository (SOR). While PPS has been the primary avenue for these requests, other IRS toll-free lines will no longer offer the SOR as a delivery method.

Additionally, tax professionals need to pass the current required authentication and also verify their Short Identification (ID). The Short ID is a unique 8-10 alphanumeric code that is systemically assigned when an IRS account is established. This Short ID is visible when the tax professional logs in to their e-Services SOR (and go to the page where you select your company). If the identity cannot be verified, transcripts will only be mailed to the address of record. PPS assistors cannot resolve issues with ID.Me identity proofing or the status of an ID.Me account.

Followup from your Editor: We have attended meetings with IRS management regarding this change and the need for the restrictions. The Service has seen more issues with fraudulent CAF identifications, particularly on the general lines. If a CAF number is compromised, it will be suspended by the Service and a letter sent to the tax professional requesting additional verification documents. During this suspension, the practitioner will not be able to process any power of attorney actions.

This letter will come from the Criminal Investigation (CI) division of the IRS within 72 hours of the suspension. At this time, it will be up to the practitioner to respond to the notice and provide the notarized identification documents requested to release the account. If it is determined there was a breach, then a new CAF number will be issued and all valid POA’s will be moved over to the new CAF number.