Overnight Finance: Sanders targets Clinton’s Wall Street ties

WATCHDOG FINDS IRS BLINDSPOT: A new fraud detection system that the Internal Revenue Service (IRS) is developing needs to be refined to spot identity theft, a watchdog said in a report publicly released Thursday.

The Treasury Inspector General for Tax Administration (TIGTA) examined the system as part of its efforts to review the IRS’s identity-theft detection efforts. Identity theft is a big issue for the IRS, with the agency having detected 1.8 million fraudulent tax returns with stolen identities in 2014, according to the report. The Hill’s Naomi Jagoda fills us in: http://bit.ly/1OSAndu.

BIDEN TEASES DEMS ON TRADE: From our own Mike Lillis at the House Democratic retreat in Baltimore: “Democratic critics of President Obama’s trade agenda got a playful warning from Joe Biden on Thursday, when the vice president announced that he’ll be the administration’s leading pitchman for the Trans-Pacific Partnership (TPP).

{mosads}”‘I know a lot of you don’t like TPP but you’re going to have to see me,’ Biden told scores of House Democrats gathered in Baltimore for their yearly retreat. ‘I apologize, because they think we get along with each other, so they’re sending me.’

“The room erupted in laughter. ‘I hope we get along,’ Biden quickly added.”

NEW SANDERS AD HITS CLINTON ON WALL STREET: A new ad from Democratic presidential candidate Sen. Bernie Sanders (I-Vt.) ties rival Hillary Clinton to the 2008 financial meltdown, raising the issue of speaking fees paid to her by Wall Street banks. It doesn’t mention her by name, but the ad makes it quite clear who the target is. The Hill’s Jonathan Swan tells us how: http://bit.ly/1WQbMJo.

OIL PRICES REBOUND: After weeks of losses, oil prices surged after Russia’s energy chief said oil-producing nations would meet to consider production cuts: http://bit.ly/1NDPTG1.

HAPPY THURSDAY and welcome to Overnight Finance, where we’re wondering if downing a giant taco salad was a smart choice. I’m Sylvan Lane, and here’s your nightly guide to everything affecting your bills, bank account and bottom line.

Tonight’s highlights include a call for overhauling Social Security, some alleged campaign trickery from Sanders supporters and more good news for home sales.

See something I missed? Let me know at slane@digital-staging.thehill.com or tweet me @SylvanLane. And if you like your newsletter, you can subscribe to it here: http://www.digital-staging.thehill.com/signup/48.

SENATORS CALL FOR DISABILITY INSURANCE FIX: Two senators are urging the chamber’s finance leaders to make fundamental fixes to disability insurance. Sens. James Lankford (R-Okla.) and Joe Manchin (D-W.Va.) are asking for reforms to Social Security Disability Insurance (SSDI) that will protect the program from running out of money. Here’s more from me: http://bit.ly/1PlDPz0.

SANDERS STAFF ACCUSED OF SHADY TACTICS: Operatives working on behalf of Democratic presidential candidate Bernie Sanders have been accused of donning pins implying they are culinary union workers to lobby for votes in several Las Vegas hotels. The Hill’s Jesse Byrnes explains: http://bit.ly/1Vusjl9.

“‘We can confirm multiple reports of Bernie Sanders’ campaign staffers attempting and gaining access to Employee Dining Rooms at Las Vegas Strip properties,’ Culinary Workers Union Local 226 said in a statement shared with The Hill. ‘We are disappointed and offended. It’s completely inappropriate for any campaign to attempt to mislead Culinary Union members, especially at their place of work.'”

PENDING HOME SALES UP: Pending home sales increased slightly in December, fueled by a pickup in the pace of purchases in the Northeast. The National Association of Realtors (NAR) said Thursday that its sales index measuring contract signings — a forward-looking indicator — increased by only 0.1 percent to 106.8 in December, from 106.7 in November. Here’s more from The Hill’s Vicki Needham: http://bit.ly/1PDrstR.

NIGHTCAP: All-day breakfast has been a major boon for McDonald’s, fueling its best quarter in nearly four years.

Write us with tips, suggestions and news: slane@digital-staging.thehill.com, vneedham@digital-staging.thehill.com, pschroeder@digital-staging.thehill.com, and njagoda@digital-staging.thehill.com. Follow us on Twitter: @SylvanLane,  @VickofTheHill, @PeteSchroeder, and @NJagoda.