![]() Spouses and dependents are eligible for an IP PIN if they can pass the identity verification process.You must pass an identity verification process.If you want to request an IP PIN, please note: No, the program is voluntary - however, the IRS highly recommends taxpayers take this proactive step to protect themselves from tax-related identity theft. The IRS will reject electronic returns that do not contain the correct IP PIN, and paper returns will go through additional scrutiny for fraud. “This is a way,” said IRS Commissioner Chuck Rettig, “to, in essence, lock your tax account, and the IP PIN serves as the key to opening that account. If you are a confirmed victim of tax-related identity theft and the IRS has resolved your tax account issues, they will send you a new PIN each year. Now, the program is going nationwide, meaning you no longer need to be a victim of identity theft to get an IP PIN. In recent years, the IRS expanded the program to specific states where taxpayers could voluntarily opt into the IP PIN program. The IRS launched the IP PIN program nearly a decade ago to protect confirmed identity theft victims from ongoing tax-related fraud. The IRS Identity Protection PIN is not a new government program. The IP PIN is known only to you and the IRS, so when you file your electronic or paper tax return, it authenticates that you are whom you say you are, thereby protecting your account and personal information. Like any other PIN, it helps to verify your identity. That’s where the IRS Identity Protection PIN comes in.Īn IRS Identity Protection PIN (IP PIN) is a six-digit number that prevents someone else from filing a tax return using your Social Security number or Individual Taxpayer Identification Number.Īs such, this PIN serves as a critical defense against identity thieves. However, the best option is to avoid being the victim of tax-related identity theft altogether. You’ve been assigned an Employer Identification Number but did not request an EIN.įortunately, there are concrete steps you can take immediately if your personal information is compromised - we discussed them on this blog recently.IRS records indicate you received wages or other income from an employer for whom you didn’t work. ![]() You get an IRS notice that you owe additional tax, refund offset, or that you have had collection actions taken against you for a year you did not file a tax return.You get an IRS notice that your existing online account has been accessed or disabled when you took no action.You get an IRS notice that an online account has been created in your name.You get a tax transcript in the mail that you did not request.You can’t e-file your tax return because of a duplicate Social Security number.You get a letter from the IRS inquiring about a suspicious tax return you did not file.It occurs when someone uses your stolen personal information, including your Social Security number, to file a tax return claiming a fraudulent refund.Įven worse, you may not know you’re a victim of identity theft until the IRS notifies you of a possible issue with your return.īe alert to potential tax-related identity theft if: Tax-related identity theft can happen to anyone, and fraudulent tax activity has increased notably in recent years. As part of that effort, they have recently expanded their Identity Protection PIN Opt-In Program to all taxpayers who can verify their identities - and they are encouraging all taxpayers to enroll. To make matters worse, cybercriminals grow more sophisticated every day with their methods of stealing your personal information and using it to file false tax returns.įortunately, the IRS has made it a top priority to crack down on tax fraud. ![]() The financial consequences can be significant and demoralizing, and recovering can be time-consuming and frustrating. While tax season is the busiest time of the year for the IRS, it can also be when identity thieves and fraudsters peak their activities. So, what does that mean for you, the average taxpayer? In an annual report covering the 2021 fiscal year, the IRS highlighted over 2,500 criminal investigations and the identification of more than $10 billion from tax fraud and financial crimes. According to the FTC, with more than 1.4 million cases of identity theft reported across the nation in 2021, a 45% increase over previous years, this is of significant concern for all Americans - and never more so than during tax filing season when tax-related identity theft is most common.
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