As part of ongoing efforts to protect citizens from identity thieves, the Internal Revenue Service announced it will stop the tax transcript faxing service in June and will amend the Form 4506 series to end third-party mailing of tax returns and transcripts in July.
Tax transcripts are summaries of tax return information. These transcripts have become very susceptible as criminals impersonate individual taxpayers or authorized third parties. Identity thieves use tax transcripts to file fraudulent returns for refunds that are hard to detect, because they resemble a legitimate tax return.
By stopping the faxing and third-party service this summer, the IRS is taking two more steps to protect taxpayer data. Last September, the IRS began to cover personally identifiable information for every individual and entity listed on the transcript. During that time, the IRS announced it intended to stop its faxing and third-party mailing service, and has since worked with tax professionals to assure they have what they need for tax