On Thursday, the IRS announced that the service along with state tax administrators and companies in the tax industry have agreed on coordinated first steps to fight with tax related identity theft.

The IRS and the companies will share information with each other about skeptical returns. They will also implement stronger authentication methods to verify a taxpayer's identity and data.

Now criminals will face a hard time to steal someone's identity and tax refund in the 2016 tax season. The IRS said, "Many major system and process changes will be made this summer and fall by the participants in order to be ready for the 2016 filing season".

That multi-layered authentication will take place mostly on the back-end. According to IRS Commissioner John Koskinen, the experience for the taxpayer using tax software might not be much different than it was this year.

The only difference will be that the software makers will share information with the IRS and state revenue departments to confirm whether the return was filed from a trusted computer and Internet address. They will also ensure how much time was taken to complete the return in order to detect the mechanized fraud.

Tax preparers and software makers will also share all data in a timely way with the IRS and states. This is being done to alert them of the attempted attacks as well as any suspicious returns or filing patterns on the computer systems.

H&R Block CEO Bill Cobb, a member of the coalition praised the IRS for taking the lead on this issue. He also applauded the progress made by the service.