Tax Tips: New sign-in options for FATCA Registration System users are coming soon
The IRS is updating the FATCA Registration System to utilize a more secure sign-in utilizing Login.gov or ID.me, the IRS’s current credential service providers. The new sign-in process will add Identify Assurance Level 1 (1AL1) security for the FATCA Registration System.
Later this month, the IRS will no longer support the use of the existing FATCA account sign-in authentication methods to access the FATCA Registration System. The FATCA Registration System provides more secure sign-in options with Login.gov and ID.me, the IRS’s credential service providers.
To access the FATCA Registration System, users will be required to sign in or register with Login.gov or ID.me. New users of Login.gov and/or ID.me will be required to create a Login.gov or ID.me account to access the FATCA Registration System. Existing users of either Login.gov and/or ID.me can simply sign in to the FATCA Registration System without creating a new account if the email matches that of the Responsible Officer or Point of Contact on the FATCA registration.
The account creation process will include verifying an email address, creating a password, and setting up multi-factor authentication to secure their FATCA account. Login.gov and ID.me will provide several ways in which an applicant can obtain a multi-factor authentication code, including obtaining a code by receiving a phone call, text message or authentication application. Users will then consent for Login.gov or ID.me to share their email address with the IRS before accessing the FATCA Registration System.
The IRS will update FATCA Registration System users when the new sign-in requirements will be implemented. Users should begin to review and update their Responsible Officer and Point of Contact information to ensure all FATCA account information is current and applicable prior to the system changes. Users should continue to register and sign-in to the FATCA Registration System using the current authentication methods.
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Tax Tips: Tax pros continue to be targeted by identity thieves;
IRS, Security Summit urge continued vigilance against evolving threats as special summer education series, Nationwide Tax Forums begin
“Protect Your Clients; Protect Yourself” series runs for eight weeks
WASHINGTON — With new and evolving scams emerging, the Internal Revenue Service and the Security Summit partners today announced the start of the special summer "Protect Your Clients; Protect Yourself" campaign to help tax professionals protect themselves against new and ongoing threats involving tax-related identity theft.
“Security threats against tax professionals and their sensitive taxpayer information continue to evolve, and it’s critical to stay on top of the latest developments to protect their business and their clients,” said IRS Commissioner Danny Werfel. “The Security Summit effort between the IRS, states and the nation’s tax industry has worked to protect taxpayers and tax returns from identity thieves, and tax professionals form a key part of these security defenses. It's critical that everyone in the tax professional community, including smaller practices, stay current on the latest developments to keep their systems safe and protect their clients."
Now in its ninth year, the Security Summit partners have worked together to raise awareness about these issues in the tax professional community through the "Protect Your Clients; Protect Yourself" campaign. This is part of the larger effort by the Summit coalition of the IRS, state tax agencies and the nation's tax community to battle tax-related identity theft that has been in place since 2015.
Security threats against tax professionals remain a daily threat. Through the spring, IRS Stakeholder Liaisons had received reports of nearly 200 tax professional data incidents potentially affecting up to 180,000 clients.
With this summer’s “Protect Your Clients; Protect Yourself” campaign, the Summit partners will work to raise awareness among tax professionals about the importance of maintaining strong security, and what to do if a security incident occurs.
“There are special steps that tax professionals need to take to protect themselves from scammers trying to obtain sensitive information in attempts to file fraudulent state and federal tax returns,” said Sharonne Bonardi, executive director of the Federation of Tax Administrators representing state tax agencies and a co-chair of the Summit’s communications team. “Continued vigilance by tax professionals is a critical part of the larger effort needed to protect tax information at the state and federal level.”
This summer’s effort will be anchored around a series of eight news releases that will run for consecutive weeks each Tuesday, coinciding with the start of the IRS Nationwide Tax Forum on July 9 in Chicago. The news release series and the summer Tax Forums will provide important information to help protect sensitive taxpayer data that tax professionals hold while also protecting their business from identity thieves.
“As the Security Summit has worked collaboratively to strengthen our internal protections against identity thieves, they have shifted more attention to tax professionals and other businesses in hopes of stealing vital information needed to file a tax return and slip through the tax community’s defense systems,” said Julie Magee, tax policy lead at Block Inc and a co-chair of the Summit’s communications team. “This means tax professionals need to be extra cautious in protecting their data.”
“We continue to educate tax professionals on security measures to prevent data breaches that expose taxpayers' private information and jeopardize their business,” said Taylor Rodier, legislative affairs director at Taxwell and a co-chair of the Summit communications team. “Staying on top of the latest developments and keeping their security up to date is vital.”
2024 Nationwide Tax Forums in five cities focus on tax professional security; registration deadlines approaching
In addition to the series of eight news releases, the tax professional security focus will be featured at this summer's Nationwide Tax Forums. Following the three-day forum in Chicago, the forums will continue on July 30 in Orlando, Aug. 13 in Baltimore, Aug. 20 in Dallas and Sept. 10 in San Diego.
The IRS reminds tax pros that registration deadlines are quickly approaching for several of the forums, which can sell out.
The forums will feature several specific sessions to help educate the tax professional community on security-related topics. Tax professionals will hear from experts at the IRS, the tax professional community as well as a special session from the Salve Regina University’s Pell Center from Rhode Island. The entire news release series will be available in Spanish as well.
By taking some basic security steps, tax pros can help protect themselves against the relentless efforts of identity thieves. This summer's effort includes reminders for tax pros to focus on fundamentals and to watch out for emerging vulnerabilities as well as new updates involving multi-factor authentication and the latest on Written Information Security Plan, or WISP, which all tax professionals are required to have.
Tax professionals are prime targets of criminal syndicates that are both tech- and tax-savvy. These scammers either trick or hack their way into tax professionals' computer systems to access client data. Even when tax pros think they have client data stored in a secure platform, such as the cloud, lack of strong authentication can make this information vulnerable.
Identity thieves use stolen data to file fraudulent tax returns that make it more difficult for the IRS and the states to detect because the fraudulent returns use real financial information. Other data thieves sell the basic tax preparer or taxpayer information on the web so other fraudsters can try filing fraudulent tax returns.
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Tax Tips: Energy efficient home improvements could help people reduce energy bills and taxes
Homeowners who make improvements like replacing old doors and windows, installing solar panels or upgrading a hot water heater may qualify for home energy tax credits.
Who can claim the credits
Taxpayers making improvements to their principal, or in some cases, secondary residence may be eligible for these credits. In some cases, renters may also be able to claim specific costs. Landlords can't use these credits for improvements made to any homes they rent out. See Form 5695 instructions for more information.
There are two tax credits to help offset costs of making energy efficient improvements.
Energy Efficient Home Improvement Credit
Taxpayers can claim the Energy Efficient Home Improvement Credit only for improvements, additions or renovations to an existing home. It doesn't apply to newly constructed homes. Qualifying costs may include:
• Exterior doors, windows, skylights and insulation materials.
• Central air conditioners, water heaters, furnaces, boilers and heat pumps.
• Biomass stoves and boilers.
• Home energy audits.
The amount of the credit taxpayers can take is a percentage of the total improvement expenses in the year of installation:
• 2023 through 2032: 30%, up to a maximum of $1,200 annually.
• Biomass stoves and boilers have a separate annual credit limit of $2,000 annually with no lifetime limit.
Residential Clean Energy Credit
Taxpayers can also claim the Residential Clean Energy Credit for qualifying costs for either an existing home or a newly constructed home. Qualifying costs may include:
• Solar, wind and geothermal power generation equipment.
• Solar water heaters.
• Fuel cells.
• Battery storage.
The amount of the credit taxpayers can take is a percentage of the total improvement expenses in the year of installation:
• 2022 - 2032: 30%, no annual maximum or lifetime limit.
• 2033: 26%, no annual maximum or lifetime limit.
• 2034: 22%, no annual maximum or lifetime limit.
To claim these credits, taxpayers should file Form 5695, Residential Energy Credits, with their tax return.
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