Compliance
Protect Yourself: The New IRS-Industry Partnership Against Tax Identity Fraud
A revamped IRS Security Summit now includes five work groups aimed at safeguarding taxpayer data and preventing fraud—here’s how taxpayers and pros should stay ahead.
By NomadicTax Research Team • 5-8 min read • June 16, 2026
## Identity Theft & Tax Fraud: Growing Threats
Over recent years, identity thieves have moved from outright return fraud to stealing financial and tax data—wage statements, withholding data, even payroll info—to file seemingly legitimate but fraudulent returns. These threats have evolved alongside technology and data flows. ([irs.gov](https://www.irs.gov/newsroom/irs-and-security-summit-partners-announce-new-framework-to-better-protect-taxpayers-and-tax-revenue-from-fraud?utm_source=openai))
## IRS & Security Summit: What’s New
On **June 8, 2026**, the IRS and its Security Summit partners announced a **restructuring of their public-private partnership** to better protect taxpayers: strengthening info sharing, early detection, and coordinated response. ([irs.gov](https://www.irs.gov/newsroom/irs-and-security-summit-partners-announce-new-framework-to-better-protect-taxpayers-and-tax-revenue-from-fraud?utm_source=openai))
They introduced **five focused work groups**:
| Work Group | Focus|
|---|---|
| Pre-Filing | Spot suspicious payroll or income info before returns filed |
| Forecasting | Identify threats early via emerging schemes |
| Preventing | Build tools & improve data protection practices |
| Detecting & Reporting | Real-time spotting of fraud indicators, better partnerships |
| Responding | Coordinated response plans when bad actors get through |
## What This Means for Tax Professionals and Taxpayers
### For Tax Professionals:
- Reinforce **data security protocols**: multi-factor authentication, encryption, secure document storage.
- Watch payroll and wage-data systems—the front lines where fraud can originate.
- Be prepared for increased cooperation with government agencies and reporting obligations.
### For Individual Taxpayers & Small Businesses:
- Keep your financial and tax data safe—use strong passwords, secure networks.
- Request an IRS Identity Protection PIN (IP PIN) if eligible—it adds a strong layer against someone filing in your name.
- Keep track of income and withholding statements; review IRS notices carefully.
## Example Actions You Can Take Now
- Sign up for the IP PIN program to prevent someone else from using your SSN.
- Tax preparers: implement **Written Information Security Plans** and MFA.
- Businesses using payroll software: insist vendors employ secure, audited solutions.
- When something seems off—wrong income on a W-2, questionable letters—report early; fraudsters depend on delays and confusion.
## Summary & Suggestions
- Tax identity fraud is evolving; this Summit reorganization recognizes that.
- Being proactive in security and data hygiene is no longer optional—it’s essential.
- Both individuals and organizations will benefit from doing the small things right—tracking, documentation, safety measures.
- For tax professionals: anticipate guidance, tools, and possibly new requirements.
Staying ahead won’t just protect your bottom line—it safeguards your identity and your rights.