WASHINGTON, D.C. — The Internal Revenue Service is restructuring its decade-old Security Summit partnership to strengthen information sharing and expand coordination with payroll providers as identity thieves increasingly target taxpayer and wage data to file fraudulent tax returns.
The changes broaden the scope of the public-private initiative, which includes the IRS, state tax agencies, tax software companies, tax professionals and other industry participants working to combat tax-related identity theft.
The restructuring reflects a shift in fraud tactics. As tax agencies and software providers have strengthened return-processing safeguards, criminals have increasingly focused on stealing underlying financial, payroll and tax information that can be used to submit legitimate-looking returns capable of bypassing traditional screening systems.
The revised framework introduces five new work groups focused on different stages of the tax administration process, from identifying emerging threats before returns are filed to coordinating responses when security incidents occur.
A key component of the overhaul is deeper involvement from payroll industry participants, whose wage and withholding records have become increasingly valuable targets for cybercriminals seeking information that can support tax fraud schemes.
The new Pre-Filing work group will focus on identifying suspicious information returns and potential fraud indicators before returns enter the tax system. Additional groups will concentrate on threat forecasting, fraud prevention, detection and reporting, and coordinated incident response.
IRS Return Integrity & Compliance Services Director Jim Clifford said the revised structure is intended to improve fraud detection earlier in the tax lifecycle.
“Identity thieves continue to evolve, and so must we,” Clifford said. “By aligning our work across every stage of the tax lifecycle and strengthening collaboration with partners, including the payroll industry, we are better positioned to stop fraud earlier and protect taxpayers and the nation’s revenue.”
The Security Summit was created in 2015 amid rising concerns over tax-related identity theft and refund fraud. According to the IRS, the partnership has helped prevent billions of dollars in fraudulent refunds from being issued and has protected millions of taxpayers from identity theft.
The initiative will continue to operate alongside the Coalition Against Scam and Scheme Threats, a Security Summit-affiliated group that focuses on rapid assessment and response to emerging fraud campaigns.
IRS Chief Executive Officer Frank Bisignano said the partnership has demonstrated the value of ongoing collaboration between government agencies and private-sector organizations in addressing evolving cybersecurity threats across the tax system.
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