"Turning Complexity into Confidence."

‹ Back

IRS IDENTITY PROPECTION PIN

 

In today’s increasingly digital world, protecting yourself against identity theft has never been more important. To address this growing concern, the Internal Revenue Service (IRS) has implemented various measures to secure taxpayer data, including the creation of the Identity Protection PIN (IP PIN). This article outlines how the IP PIN works, why it is a vital security feature, how to obtain one, and how it protects taxpayers from fraud.

 

Why Is the IP PIN Important?

The IRS Identity Protection PIN serves as a powerful defense against tax-related identity theft. Criminals often use stolen Social Security Numbers (SSNs) or Individual Taxpayer Identification Numbers (ITINs) to file fraudulent tax returns, aiming to steal refunds or claim credits illegally. Here are some of the key benefits of using an IP PIN:

• Prevents Fraudulent Tax Filings: By requiring the IP PIN as part of the tax return process, the IRS creates a barrier that prevents unauthorized individuals from filing a return in your name.
• Secures Refunds and Credits: Taxpayers with an IP PIN can rest assured that their legitimate refunds won’t be diverted by identity thieves.
• Reduces Delays in Processing: Using an IP PIN helps streamline the IRS verification process, enabling the timely processing of tax returns and refunds.
• Enhances Personal Security: This additional layer of authentication strengthens the overall security of your tax filing process, reducing the risk of unauthorized access to sensitive data.

 

What Is an Identity Protection PIN (IP PIN)?

The IRS Identity Protection PIN is a six-digit number designed to add a layer of security for taxpayers. It is specifically intended to verify the identity of the taxpayer when filing federal income tax returns.

Without this unique code, the IRS will not process a tax return under the taxpayer’s Social Security Number or ITIN, making it an effective deterrent to identity thieves seeking to file fraudulent returns.

This extra layer of security is especially valuable for taxpayers who have been victims of identity theft or who are at a higher risk of fraudulent activity.

 

Who Can Get an IP PIN?

The IRS doesn’t issue an IP PIN to everyone automatically. Eligibility depends on specific circumstances, including the following:

• Victims of Identity Theft: Taxpayers who have experienced identity theft involving their federal tax returns typically qualify for an IP PIN to prevent future incidents.
• IRS Invitations: Some taxpayers may receive a letter from the IRS inviting them to obtain an IP PIN based on their filing history or risk factors.

For the most accurate and updated information about eligibility, taxpayers should consult the IRS website or contact the agency directly.

 

How to Get an IP PIN

If you are eligible, there are several ways to apply for and receive an IP PIN:

• Use the Online Tool: The IRS provides a Get an IP PIN tool on its website (Get an identity protection), . This tool guides taxpayers through an authentication process to obtain their unique PIN.
• IRS Letter CP01A: If the IRS sends you an letter for an IP PIN, follow the instructions provided in the letter to secure your PIN.
• Once issued, a new IP PIN will be generated for you each year. It is crucial to keep this PIN secure, as it will be required each time you file a federal tax return.

 

How Does the IP PIN Protect You?

When a taxpayer receives an IP PIN, it must be entered on their federal tax return to verify their identity. Here’s how it works:

• Secure Filing: The taxpayer includes the IP PIN in the designated section of their federal tax return.
• IRS Authentication: The IRS cross-checks the IP PIN with its records to confirm the return is legitimate.
• Prevents Fraudulent Returns: If someone attempts to file a return without the correct IP PIN, the IRS will reject the filing.
• Efficient Processing: Once the IP PIN is verified, the IRS can process the return and issue any refunds without unnecessary delays.

By requiring the IP PIN, the IRS effectively blocks unauthorized access to taxpayers’ accounts, ensuring that refunds and tax credits reach the rightful recipient.

 

What to Do If You Lose Your IP PIN

If you misplace or forget your IP PIN, you can retrieve it through the IRS’s Get an IP PIN tool on their website. This tool will guide you through the verification process to regain access to your PIN. Since the IP PIN is a critical piece of security, make sure to store it securely and avoid sharing it with anyone.

 

Should You Get the IP PIN?

The IRS Identity Protection PIN (IP PIN) is an essential safeguard for taxpayers. It ensures that only the rightful taxpayer can submit returns under their SSN or ITIN, offering peace of mind and added confidence in the tax filing process. For those eligible, obtaining and properly using an IP PIN can significantly reduce the risk of tax-related identity theft. Staying informed about IRS updates and safeguarding your IP PIN are vital steps in protecting your personal information. By using this simple yet powerful tool, taxpayers can file their returns with greater security and peace of mind.

 

 

Copyright: This article is original and copyright © Alphakey Advisory LLC. This article may not be reproduced, copied or used in any way, in whole or in part, without permission. The information provided here is general in nature and should not be regarded as legal, accounting, or tax advice from Alphakey Advisory LLC. Readers are advised that this material may not apply to or suit their specific circumstances, and additional considerations—both tax and non-tax—may be necessary before undertaking any action based on this content.