The IRS announced today that it will transition away from using ID.me, a third-party service that uses facial scanning technology, as a requirement for taxpayers to set up IRS online accounts. “The transition will occur over the coming weeks in order to prevent larger disruptions to taxpayers during filing season,” the IRS announcement said.
“The IRS takes taxpayer privacy and security seriously, and we understand the concerns that have been raised,” said IRS Commissioner Chuck 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.”
Last week a group of Republican senators sent a letter to IRS Commissioner Charles Rettig expressing “serious concerns about how ID.me may affect confidential taxpayer information and fundamental civil liberties.” Today Senate Finance Chair Ron Wyden (D-Ore.) called on the IRS to end the use of ID.me and instead transition to an existing government identity verification service, Login.gov, which does not use facial recognition technology.
The IRS announcement says that the announcement “does not interfere with the taxpayer’s ability to file their return or pay taxes owed.” That’s technically true. You don’t need an IRS online account to e-file or file on paper. But the information in the online accounts can be crucial for some taxpayers to make sure they’re filing accurate tax returns and get any tax refunds they’re due quickly.
That’s because 36 million families with kids who got advance child tax credit payments in 2021 (as part of the American Recovery Act) need to report how much they got in these payments on their tax returns—and in some cases, the IRS says, the best way to check how much you got is via your IRS online account.
The Child Tax Credit Update Portal now issues a warning in bold:
Do not use the Child Tax Credit Update Portal for tax filing information.
Instead, it says: “To complete your 2021 tax return, use the information in your online account. You can also refer to Letter 6419.”
Alas! On January 27, the IRS issued a statement saying that for a limited group of taxpayers, the information in Letter 6419 is incorrect. The group includes people who moved or changed bank accounts in December, and their checks were returned as undeliverable or their direct deposits were rejected. So instead of counting on the letter, the statement offers this advice:
“For any recipient who doesn’t receive their letter or is unsure of the amount they received in 2021, there are options to help. In addition to the letters being mailed, the IRS encourages people to check their Online Account on IRS.gov beginning January 31.” So you’re stuck using ID.me.
If you don’t already have an IRS online account, with a username and password, the only way to sign in is by using ID.me. That takes the willingness to give up some private information—and patience.
The IRS announced in November that starting this summer it would require ID.me verification for everyone—including people who have accounts using the old username and password sign-in method. Watchdogs raised the alarm over ID.me’s use of face-scanning data and the gathering of personal data including passports, birth certificates and IRS Form W-2s.
ID.me says it’s secure, and that it has provided digital identity verification for 70 million-plus Americans across ten federal agencies and 30 states to date.
How easy is it to get an IRS online account through ID.me? Nine out of ten people go through the verification process in five minutes, according to the company. You type in your address, birthday and cellphone number, upload identification like a driver’s license, agree to a credit check and a face scan. For the other 10%, if the self-service method doesn’t work, the amount of time trying to use the self-service method, combined with the wait for a video chat representative, can mean the whole process takes much longer.
From June 1, 2021, through December 31, 2021, peak wait times for a video chat were 45 minutes, a company spokesperson said, adding that they’re hiring more seasonal video chat agents and are “confident that as our workforce doubles in size and comes back online at full capacity, we will be able to serve all users efficiently.”
In my case, when I tried the self-service method twice, I got two different error codes. That meant I was offered the option of a video chat. I had a four-hour wait (three hours and 52 minutes per the countdown clock to be exact). If you leave the tab up on a desktop computer, you can watch the countdown. When a rep popped up, the dim call center where she was working looked a little sketchy, and she seemed a little bored, but the verification process went smoothly. I held up my driver’s license and then my passport to my laptop camera, and agreed that she could take my photo (“for auditing purposes”).
Next step is back to your email, where you have to click on a link to return to the IRS, then click on the ID.me button to consent to share your verified information. Once you do that, you can sign in to your IRS online account using your new ID.me verification.
Armed with your ID.me verification, you can log onto your IRS online account. The home page tells you how much, if any, the IRS says it issued you in 2021 advance Child Tax Credit payments (and Economic Impact Payments—a.k.a. the $1,400 stimulus checks issued to most Americans in 2021). Note: If you’re married and file jointly, your IRS online account will have a total household amount for the Child Tax Credit payments issued while each spouse will get a Letter 6419 reporting half of the household advance payments.
Got more Child Tax Credit questions? The IRS issued a 24-page document explaining how the new advanced child tax credit payment for 2021 works in January: IRS updates Filing Season 2021 Child Tax Credit frequently asked questions, information to help taxpayers prepare their 2021 returns. And then the IRS issued an updated 26-page document in February: IRS updates the 2021 Child Tax Credit and Advance Child Tax Credit FAQs. The major change was around what to do if the Child Tax Credit Update Portal shows that a payment was issued but you never received it. The answer: Call the IRS.
Further Reading:
IRS Issues Confusing Advice On Reconciling The Child Tax Credit
Taxpayer Advocate Warns Of Tax Refund Delays, IRS Buried In Paper