On June 23rd, the IRS announced a significant change to the Income Verification Express Service (IVES) program. The move will expand the required vetting of all users of the system, and is part of a larger initiative by the IRS to increase security of their systems in the wake of a sizeable data breach in 2015 that exposed the tax information of more than 700,000 citizens to identity thieves.
The IRS has mandated that all participant companies, such as Strategic Information Resources, implement strict new due diligence standards for new clients who sign up for tax return verification going forward, and to work with their existing clients to re-verify their information and validate all end users with access to IRS data. Initially the deadline for re-verifying existing client information was set for July 1st giving lenders only about 1 week to comply. SIR, along with other consumer reporting agencies and a national trade association, successfully worked with the IRS to extend that deadline to July 15th to allow participants more time to re-verify clients with proper due diligence and the appropriate rigor.
Shortly after the initial announcement, SIR began contacting primary contacts at our existing clients to inform them of the IRS changes and to collect the required information and certifications. Clients will be asked to validate all active users of the system, and to agree to certain safeguarding measures designed to protect consumer information.
If you have questions about these changes to the IVES program vetting requirements, or would like to discuss how to compliantly perform tax return verifications, please CONTACT US.