Which statement about identity theft response teams is accurate?

• A. To flag and review suspicious returns and verify information.
• B. To prosecute taxpayers.
• C. To issue refunds immediately.
• D. To ignore suspicious activity.

Answer: (A)

Identity theft response teams focus on protecting taxpayers by detecting and preventing fraudulent filings. Their main job is to flag suspicious returns and verify information to ensure the person submitting the return is legitimate and that any refund goes to the correct recipient. They use risk indicators, review data for inconsistencies, and may request supporting documents or additional verification before moving forward. They do not prosecute taxpayers—that’s the role of law enforcement—and they do not issue refunds immediately when red flags exist; refunds can be delayed or redirected to safeguard the system. They also don’t ignore suspicious activity, since identifying and investigating potential identity theft is their core function. This makes the statement about flagging and reviewing suspicious returns and verifying information the best fit.