IRS Identity Protection PINs Can Help Stop Tax Fraud
Tax identity theft is a real problem. But using an Identity Protection PIN can minimize your risk of tax fraud and give you peace of mind. Read on to learn more about how a tax identity pin can protect you and how to get one.
Tax identity theft can hit fast and create a huge mess. For example, a thief may file a fake tax return using your Social Security number. And you won’t know until you try to file your return and you receive a rejection. You may even have to prove who you are. And you may have to fix the damage before the IRS accepts your return, which can delay your refund.
For these reasons, the IRS urges taxpayers to get an Identity Protection PIN. The short name is IP PIN.
An Identity Protection PIN is a six-digit number. Only you and the IRS know it. The IRS uses it to help confirm your identity when you file a federal tax return. This one step can make tax fraud harder.
From our side at Simple Finances, this is one of the easiest steps a taxpayer can take to lower the risk of tax fraud. It is simple, voluntary, and free. And it can help stop repeat problems.
What an Identity Protection PIN Does
An Identity Protection PIN has one main job, to protect your federal tax filing.
A PIN Helps the IRS Know It Is Really You
When you have an IP PIN, you must put it on your federal tax return. The IRS uses that number as part of its identity check.
If a thief tries to file a fake return without the right IP PIN, the false return is harder to process.
That matters because thieves may already have key data. They may have your Social Security number. They may have your date of birth. They may have your address.
The IP PIN adds one more thing they should not have.
That extra layer helps.
A PIN Applies to More Than One Return Type
Many people think the IP PIN only matters for one current-year return.
That is not correct.
If you have an IP PIN, you must use it on federal tax returns you file during that year. That includes:
- Current-Year Returns
- Prior-Year Returns
- Amended Returns
Who Can Get an Identity Protection PIN
Many taxpayers can get one. And the program is not only for taxpayers who already had tax fraud. Anyone with a social security number (SSN) or individual identification taxpayer number (ITIN). This includes taxpayers who live outside the United States. You can get one even if you do not have to file.
A PIN is a Good Preventive Step
Taxpayers do not need to wait until after they are a victim of fraud to get an Identity Protection PIN. A better move is to get one as a prevention step. Think of it like locking a door before a break-in. The IP PIN is not a full security plan by itself. It does not replace careful online habits. But it does add a useful layer. Sometimes that layer is enough to stop a bad result.
How to Get an Identity Protection PIN
The fastest way to get an Identity Protection PIN is through an IRS Online Account. If you already have an IRS Online Account, log in and go to the Profile page. That is where you can request the IP PIN. If you do not have an account, you must create one first. But don’t wait until right before right before you file to get your pin because identity checks can take time.
Your Tax Professional Cannot Get It for You
A tax professional cannot request your IP PIN for you. You must get it yourself. That helps protect the process. But once you get your IP PIN, you can give it to your tax preparer for filing use.
Important Rules You Need to Know
- The IP PIN lasts one year and then it expires. A new one is generated for security reasons.
- The IRS will not call, Email, or text you for your PIN. If someone contacts you for your PIN, consider it a scam and do not share your number.
- You must use the PIN if you have one. Once you get an IP PIN, use it on your federal returns filed during the year.
What If You Cannot Verify Your Identity Online
Some taxpayers cannot complete the online identity check. If you cannot verify your identity online, you may still be able to get an IP PIN by filing Form 15227. You can mail or fax the form to the IRS. Some taxpayers may also be able to work through a Taxpayer Assistance Center.
Final Thoughts
An IRS Identity Protection PIN is a practical way to lower the risk of tax-related identity theft. It is a six-digit number known only to you and the IRS. It helps the IRS confirm your identity when you file. It is open to taxpayers with an SSN or ITIN. It lasts one year. And it can help stop repeat tax fraud.
If you want help deciding whether an Identity Protection PIN is right for you, contact us. We help individuals and business owners with tax problem resolution and tax advice.
