COLUMN: Know What the IRS Knows About You

There are multiple situations where you need to find out what the IRS knows about you. It could be for the purpose of obtaining a loan, filing tax returns, or simply getting a copy of tax records for your files. A great place to start is understanding the IRS’s new online account function.

In the past, if you needed a copy of a tax return or wanted copies of W-2s and 1099s, you called the IRS or filled out a form and sent it to them. You then waited. Now this information is available online through their Get Transcripts function.

Get registered using ID.me. To get copies of your information from the IRS, you must first register and have your identity confirmed. The identity confirmation process is either an interview or verification process using an approved government-issued ID like a passport or a valid driver’s license. So before starting the process it is best to be prepared with:

Original copies of either your driver’s license or passport

A cell phone to take a selfie and access the software required by ID.me

Have a secure email and cell phone number

A secure computer on a private network

CAUTION: Avoid scammers who are willing to help you get access to your files. The IRS is letting taxpayers know that this is a common technique of taxpayer data theft!

Getting access to your records. Once you have your identity confirmed, the IRS will allow you to set up a password and multi-factor authentication to access to your account.

* Options within the account. Once your account is set up you can see:

* Your account status

* Payment function and activity

* Copies of notices and letters

* Any authorizations to access information

* Tax records

In the Get Transcripts function, you can retrieve copies of W-2s and 1099s filed by others on your SSN, review copies of original 1040 transcripts, and see any changes or modifications to your tax return.

Some more tips:

Use caution. Setting up an online account with the IRS requires sharing sensitive information. So only do this on a secure device, on a home or private network. Make sure you are on the IRS website. DO NOT use a link to access the site.

You do it. The online retrieval service is for individuals. Do not have someone else set up your account and do not share your login information with anyone.

Online versus phone or mail. This new retrieval service saves a lot of time versus filing out forms or requesting information. So consider signing up only if you are in need of a form and cannot get it any other way.

The online service is not for everyone. While it does save time, if you are at all wary of the service, ask for help.

One of my primary objectives is to help you achieve your financial goals through a holistic approach that is tax-efficient in my wealth management and tax resolution practice. For more information, visit www.fredtfoxiii.com.