In 2015, following numerous customer data security breaches at major U.S. companies, the IRS announced special tax relief to breach victims who were provided identity protection services as a result of the breach. In January 2016, the IRS has extended that relief a step further. Specifically, in response to comments solicited in connection with the 2015 announcement, the IRS has provided special tax relief to individuals who receive no-cost identity protection services before a data breach.
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