Lawmaker says IRS needs more robust response to identity theft

Senate Finance Chairman Max Baucus, D-Mont., Tuesday said the IRS response to identify theft problems has been "tepid and insufficient" and that he will be seeking more information from IRS Commissioner Douglas Shulman.

"I need the IRS to give me clear, substantive answers on their strategic plan -- and its implementation -- to treat and resolve cases of identity theft," Baucus said in a statement, while noting that the IRS report was "full of good intentions."

Baucus was reacting to a report from Shulman in response to identify theft issues raised in an April hearing before the Finance panel on the agency's Identity Protection Strategy.

The IRS said it would offer taxpayers beginning in October the ability to "self-report" incidents of identity theft, and that in January the agency would start using a special indicator to more easily distinguish between legitimate tax returns and those submitted by identity thieves.

Also beginning in October, the agency will have in place a specialized victim assistance center, providing a central point of contact to deal with tax issues arising from identity theft, among other steps the agency is taking.