Tax identity theft is on the rise, and the IRS offers a strong solution to protect your tax return from scammers: the Identity Protection PIN (IP PIN). This six-digit number is a crucial security layer that ensures only you can file a tax return in your name. Here’s everything you need to know:

What Is an Identity Protection PIN?

An IP PIN is a six-digit number that only you and the IRS know. It prevents anyone else from filing a tax return under your Social Security Number (SSN), protecting your tax refunds and personal data from identity thieves.

Why You Need an IP PIN

Tax identity theft can result in fraudulent returns filed using your SSN. If thieves file a false tax return before you do, it can cause delays in processing your legitimate return or refunds, or even lead to serious financial and legal complications. An IP PIN prevents such misuse by requiring this unique number to be included when filing your return, ensuring only the rightful taxpayer can submit returns under your identity.

Who Should Get an IP PIN?

While anyone can apply, an IP PIN is especially beneficial if:

• You’ve been a victim of identity theft.
• You’ve had issues with tax fraud in the past.
• You want an extra layer of security for your tax account.

In certain cases, the IRS may automatically assign an IP PIN to victims of tax-related identity theft, but now, the service is available to all taxpayers on a voluntary basis.

How to Obtain Your IP PIN

1. Online Application

The easiest way to obtain your IP PIN is by using the IRS Online Account. After verifying your identity, you’ll be assigned your unique IP PIN. The online account gives you 24/7 access to your IP PIN and other IRS-related services.

2. Form 15227

If you’re unable to verify your identity online, you can submit Form 15227, provided your annual income is below $72,000. Once processed, the IRS will assign you an IP PIN.

3. Taxpayer Assistance Center

For those who can’t complete the process online or by mail, visiting an IRS Taxpayer Assistance Center is another option. An appointment will be required.

How an IP PIN Works During Tax Filing

When it’s time to file your taxes, you’ll need to include the IP PIN on your tax return. Without it, the IRS will not accept your return, giving you complete control over your tax filings. This prevents fraudsters from attempting to file in your name.

Each year, a new IP PIN will be generated for your protection. If you lose or forget your IP PIN, simply log in to your IRS Online Account to retrieve it.

Important Points to Remember

• Annual Renewal: Your IP PIN changes every year for enhanced security, so you must log into your IRS Online Account to retrieve the new number before filing.
• IRS Contact: The IRS will never ask for your IP PIN via phone, email, or text. Any such communication is a scam attempt, and you should report it.
• Exclusive Use: The IP PIN is exclusively used for your federal tax return. Keep it safe and don’t share it with others, including your tax professional. If you’re using a professional tax preparer, they won’t need the IP PIN for their internal processes but will require it when filing your return on your behalf.

Advantages of an IRS Online Account

Beyond securing your tax return with an IP PIN, an IRS Online Account offers additional benefits. You can:

• Monitor payments and refund statuses.
• View your tax history and manage your tax profile.
• Access digital copies of tax notices or letters.

By setting up this account, you have a direct connection with the IRS, providing greater transparency and control over your tax details.

What If I Can’t Get an IP PIN?

If you don’t qualify for the IP PIN program or have difficulty verifying your identity online, there are still steps you can take to protect your tax information:

• File early: By filing as soon as possible, you decrease the window of opportunity for identity thieves to attempt fraudulent filings.
• Monitor your credit: Keep an eye on your credit report for any suspicious activity related to your Social Security Number.
• Report fraud: If you suspect that you’re a victim of tax-related identity theft, contact the IRS immediately to resolve the issue.

Conclusion

An Identity Protection PIN from the IRS is one of the most effective ways to defend against tax identity theft. By taking this simple step, you can greatly reduce the risk of scammers filing fraudulent tax returns in your name. The process to get an IP PIN is straightforward, and once you have it, you’ll enjoy peace of mind knowing that your tax information is secure.

Make sure you protect your financial future by signing up for an IRS Online Account today and securing your Identity Protection PIN.

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