From the official announcement by IRS ↗
Identity theft for tax fraud affects millions of American taxpayers each year, forcing the Internal Revenue Service (IRS) to hold millions of returns for verification before issuing refunds. According to an IRS announcement, during the 2024 tax season alone, the agency suspended processing of more than 1.9 million returns while waiting for taxpayers to confirm their identity. This is the backdrop that prompted the IRS to adjust its identity verification process for opening online accounts at irs.gov.
The specific change: taxpayers are no longer required to provide biometric data (facial scanning) to open an online IRS account. According to Krebs on Security, the IRS announced on Monday that users can choose to have a live video interview with ID.me — the private company responsible for the IRS identity verification system — instead of submitting selfies and identity documents through an automated system. Previously collected biometric data will be permanently deleted within a few weeks.
Who is affected: this is important news for seniors, nail salon owners, small business operators, and anyone who hesitated to open an IRS account due to concerns about biometric privacy — a demographic that represents a significant portion of the Vietnamese American community due to preferences for cash transactions and unfamiliarity with digital identity verification. Additionally, anyone who has been a victim of identity theft for tax purposes is directly impacted.
In practice: the IRS states that those whose identities were stolen for tax purposes will automatically receive an identity protection code called an IP PIN — a unique number known only to that person and the IRS, issued anew each year. When the IRS suspects a return is fraudulent, it sends a verification request letter and only processes the refund after the taxpayer completes the verification step — which can be done online, by phone, or in some cases in person at a Taxpayer Assistance Center. Taxpayers can check verification letters through their online account or call the Taxpayer Protection Program hotline at 800-830-5084 (those outside the U.S. call 267-941-1000). On a tax transcript, code 570 indicates a return is being delayed, while code 971 appears after the IRS sends a letter requesting additional information.
See the official IRS announcement at the source link below.
The IRS suspended processing of more than 1.9 million returns in a single tax season alone while waiting for identity verification.
Analysis
This change is not random: according to Krebs on Security, Senator Ron Wyden — Chair of the Senate Finance Committee — previously sent a letter questioning the IRS about mandatory biometrics, arguing that the government's Login.gov tool was capable of serving as a replacement if properly funded. Pressure from the press and Congress forced the IRS to back down just weeks after announcing its partnership with ID.me. This also exemplifies the typical American policymaking process: an administrative decision sparks backlash, journalists investigate, lawmakers press for answers, and the agency adjusts course — quite different from the IRS simply tightening anti-fraud regulations as usual.
Diaspora Impact
If you previously hesitated to open an IRS account because of facial scanning requirements, you can now choose a video interview with ID.me instead — no biometric data needed. Anyone who receives a verification letter from the IRS should respond promptly to avoid refund delays; you can check letters through your online account at irs.gov or call 800-830-5084. Those who have been victims of identity theft should proactively register for an IP PIN to protect their tax records in future years. Important: all transactions should be done directly through irs.gov, not through unofficial intermediary services.