Tax identity theft continued to be a concern for the IRS in 2012. In the first 10 months of the year, the IRS identified 1.2 million incidents of tax identity theft. The IRS inventory of tax identity theft cases increased 50% from 2011 to 2012. For the 2013 filing season, the IRS plans to send about 500,000 Identity Protection Personal Identification Numbers to allow tax identity theft victims to file their tax returns with the IRS. While most of these incidents are related to fraudulent refund schemes, many result in notices for under-reporter inquiries, duplicate returns and other discrepancies. The IRS established specialized identity theft groups in each of its business units to help with identity theft cases and provide timely responses.
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