Under pressure from Congress, the IRS announced it will transition away from using a third-party facial recognition service to authenticate people creating new online accounts, as we mentioned in our article IRS Will Soon Require Selfies to Access Some Features on Their Site . Last year, the IRS began requiring taxpayers to use “ID.me” to access personalized eligibility information for the expanded child tax credits funded by the American Rescue Plan. The agency had planned to expand use of ID.me to all taxpayers later this year.

The use of facial recognition has received criticism on a bipartisan basis from the Senate Finance Committee. Republicans on the Committee sent a letter to IRS Commissioner Chuck Rettig last Thursday, writing: “While we understand the IRS’s use of ID.me is intended to protect data and reduce fraud, we have serious concerns about how ID.me may affect confidential taxpayer information and fundamental civil liberties.” On Monday, the Democratic chair of the Committee also sent a letter asking the IRS to discontinue the program, writing: “I have long argued that Americans should not have to sacrifice their privacy for security. The government can treat Americans with respect and dignity while protecting against fraud and identity theft. The IRS should take immediate steps to address the many valid concerns that have been raised by taxpayers about its use of facial recognition technology.”

IRS Commissioner Chuck Rettig quickly responded that the IRS would oblige: “The IRS takes taxpayer privacy and security seriously, and we understand the concerns that have been raised,” said Rettig. “Everyone should feel comfortable with how their personal information is secured, and we are quickly pursuing short-term options that do not involve facial recognition.”

To prevent larger disruptions during filing season, the transition will occur over the coming weeks. The IRS plans to “quickly” develop and bring online an additional authentication process that does not involve facial recognition. The transition announced today does not interfere with the taxpayer’s ability to file their return or pay taxes owed. The IRS will continue to accept tax filings and people should continue to file their taxes as they normally would.

UPDATE: See here for new update regarding ID.me Beginning this summer, taxpayers will be required to confirm their identity through a third-party company to access their IRS.gov account. To protect taxpayers’ privacy and reduce fraud, the IRS has partnered with ID.me to confirm users’ identities. We expect the IRS to expand the program in the future, but this should not impact your ability to pay or file taxes. If you have an existing login, it will be deactivated after the summer of 2022. You will need to create an ID.me login to continue using the following IRS services:

• Child Tax Credit Update Portal
• Get Transcript Online
• Get an Identity Protection Pin (IP Pin)
• View Online Payment Agreements

  Before you begin, you will need a valid government-issued photo ID – a driver’s license or passport are both valid forms of ID. You will also need access to a smartphone or a computer with a webcam to take a selfie. The steps can be quite lengthy – especially if you are required to use alternative methods for identity verification. Follow these steps when you are ready to begin: Step 1: Navigate to IRS.gov and click on “Sign in to Your Account” in the middle of the screen. You will be prompted to either login with ID.me or create a new account with ID.me. Step 2: Create a new account. You will be prompted to enter your email and create a password. Once this step is complete, you will be prompted to confirm your email address by clicking on the link in the verification email. Step 3: Choose a Multi-Factor Authentication (MFA) option from the following: text message, phone call, push notification, code generator application, FIDO security key, or NFC-enabled mobile security key. Step 4: Upload images of your government-issued ID. You have the option of taking a picture with your smartphone or uploading the ID. Step 5: Once your documents are accepted, you will be prompted to take a live selfie so that ID.me can compare the live image to your government-issued ID. Step 6: Verify your landline or cell phone number. Voice-over-IP will not be accepted. Step 7: Verify your social security number. Step 8: Review the summary of personal information and select the checkbox for the Fair Credit Reporting Act. Step 9: Grant access to your personal identifiable information to the IRS. If you deny access, you will not be granted a login. Creation of an ID.me login is not currently required. However, given the time investment required to go through these steps, we advise that you confirm your identity sooner rather than later so that you have access to your account when the need arises. If you have any questions regarding this new requirement, please reach out to your HBK tax advisor.