As a recovering former IRS employee; I can answer some of this. Mostly it boils down to leadership (a lack thereof). The IRS puts all of its most critical "features" towards the end of their multi-year development projects. So, as an example, the "document matching" components in the IRS's ACA processing systems that help identify fraud won't be built until 2018 or somewhere around that time frame. Leadership hopes that this will somehow prevent steep cuts; but as we have seen this really doesn't work (anymore). Beyond that; the U.S. government as a whole desperately needs better identity management. Something like the HSPD PIV card for all citizens (or the DoD Common-Access-Card) would solve a ton of identity management issues. But politically, I don't think people are ready for that. The advice I give to my friends is that until the identity management stuff is fixed; always file your returns early. This dramatically reduces the chances that you will be an identify theft victim with the IRS.