Although biometrics could be an important tool that the IRS can utilize to protect taxpayer identities, reluctance on both sides may pose a significant challenge to its implementation.  Biometrics such as fingerprint and iris scans can directly connect taxpayers to their personal information.  Further, biometric data can only be used by the individual to whom they belong, better protecting taxpayers from identity thieves.  However, citizens are reluctant to give the IRS access to such information and the IRS is reluctant to accept that type of security.  Ultimately, it is likely that the IRS and taxpayers will have to accept the use of biometrics to further secure their data.

See William Hoffman, “TIGTA Panelists Touts Biometrics for Identity Theft Prevention,” 2014 Tax Notes Today 118-8

Posted by David Song, Associate Editor, Wealth Strategies Journal