What they are and why you should have one!
A problem occurs
Imagine if you sit down to do your taxes online and the IRS rejects your tax return once you file because someone else is using your Social Security number? This, unfortunately, happens from time to time. It might occur because someone filed taxes using an incorrect number or it could be due to fraud.
Being proactive
Identity protection pins are a great way to protect yourself from tax-related identity theft. They essentially are six-digit numbers that prevent someone else from filing a tax return using your Social Security number (SSN) or individual taxpayer identification number (ITIN). This number, called the identity protection personal identification number (IP PIN), is known only to you and IRS. It is used to help the IRS verify your identity when you file an electronic or paper tax return.
The IRS shares that even though you may not have a filing requirement, an IP PIN still protects your account. Anyone with an SSN or an ITIN can get an IP PIN, including individuals living abroad.
Tax-related identity theft
It’s no fun to be a victim of tax-related identity theft. For confirmed victims, not only will the IRS work to resolve your account issues, but they will also mail you a CP01A Notice with your new IP PIN each year. Note that an IP PIN is valid for one calendar year, and a new IP PIN is generated each year for your account. An IP PIN must be used when filing any federal tax returns during the year including prior year returns.
How to get an IP PIN
The IRS shares information on how to get an IP PIN on their official site at www.irs.gov. The quickest way to receive an IP PIN is to request one through your Online Account. If you don’t have an account on IRS.gov, you must register to validate your identity. Once you have opted in and obtained an IP PIN online, you will need to retrieve your IP PIN online each calendar year as a CP01A notice will not be mailed.
A few more things to know
- Having an identity protection PIN is a proactive step in protecting yourself from tax-related identity theft.
- Most tax professionals suggest that tax clients establish an IP PIN for fraud protection.
- How it works: A person will enter the six-digit IP PIN when prompted by your tax software product. Or one may provide this number to a trusted tax professional who is preparing their return.
- Note that correct IP PINS must be entered on tax returns to avoid rejections and delays. Incorrect or missing IP PINS can result in the rejection of an e-filed return or a delay of a paper return until information is verified.
- Do not share your IP PIN with anyone but your trusted tax advisor – and only when you are ready to sign and submit your tax return.
- The IRS makes it clear that they will never ask for your IP PIN. Phone calls, emails, or texts asking for your IP PIN are scams. Do NOT give out your IP PIN.
Helping you stay protected
The IRS is continually working hard to reduce tax-related identity theft. Therefore, they offer an extra layer of protection for taxpayers by introducing identity protection PINs. It is generally wise to take proactive measures to ensure that your tax information cannot be accessed by other individuals.
Disclosure: This article is purely informational and is not intended as individual advice. Contact your tax professional or the IRS to learn more.
Yes, I do believe we have enough scumbags (I won’t mention party name) to warrant using a protective tool like this one.
If you’ve signed up for an IRS PIN, you will need to retrieve it from the IRS yearly before you file your tax return. They change the PINs annually to help prevent further fraud.
This is something I learned the hard way. I got the PIN last year when I was caught up in the National Public Data Breach where millions of SSNs were stolen. After my IRS PIN was created, I got a message to keep the PIN in a secure location, as I’d need it to file my taxes, which I did. They didn’t tell me that they would change the number yearly — until my return was rejected because last year’s number was no longer valid. Thankfully, I was able to retrieve the number and successfully file my tax return electronically. I now know to retrieve the new number every year before I file my taxes.
Apparently, the IRS was supposed to send me a copy of my PIN last year, and the notification about the annual number change may have been in that letter. I never got the letter, and neither did my husband.
ID Theft:
SS
Medicare files, policies,
Hacking
Data Brokers= also Spam
Focus on Data Brokers
Mishandle files we face ID theft
FYI: Fully 40% of phone calls to Social Security are scammers trying to change the auto-deposit destination for legitimate SS recipients to a different account.
I see that I can no longer log in with my old IRS account credentials, it has to be ID.me. So far I haven’t seen any reason to trust ID.me or the IRS enough to set up an account. In fact, I had heard, and this article says, that IRS was going to abandon ID.me, but instead they have abandoned my old login method. Have the facts in this article materially changed?