The Identity Protection PIN (IP PIN) is a six-digit number issued by the IRS to help safeguard taxpayers from tax-related identity theft. This code provides an additional layer of security, preventing identity thieves from using your Social Security number (SSN) to file a fraudulent tax return and claim your tax refund. Optima Tax Relief explains what the IP PIN is, how it works, and why you should consider getting one before tax season.
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What Is an IP PIN?
The IP PIN is a unique six-digit number assigned to eligible taxpayers by the IRS. Once issued, the IP PIN is required to electronically file your tax return or submit a paper return. It ensures that only someone with your IP PIN can file under your SSN, making it much harder for fraudsters to submit fake returns in your name.
How Does the IP PIN Work?
After receiving an IP PIN, you must include it on your tax return each year. Without this code, any electronically filed return under your SSN will be automatically rejected by the IRS. For paper returns, the IP PIN acts as an extra layer of verification to help ensure the return’s authenticity. If you’re assigned an IP PIN and attempt to file without it, the IRS won’t accept your tax return. This added layer of security gives you greater control over who can file a return on your behalf, adding an essential safeguard in an era of increasing cybersecurity concerns.
Who Should Consider Getting an IP PIN?
The IP PIN program is open to all taxpayers who complete identity verification through the IRS. It’s especially beneficial if you have experienced tax-related identity theft. For example, if you’ve had a fraudulent return filed in your name in the past, an IP PIN can prevent repeat occurrences. If your SSN or personal data has been compromised due to data breaches, consider adding this extra layer of protection. It’s also a good option if you want to take every measure available to secure your tax information, an IP PIN provides an added level of control over your IRS accounts.
How to Get an IP PIN
While initially available only to victims of tax-related identity theft, the IP PIN program is now open to all taxpayers who can verify their identities. Here’s how you can apply:
- Create an IRS Online Account: Visit the IRS website and set up a secure online account. You’ll need to verify your identity, typically by answering questions based on your financial records, or by using identification methods like a government-issued ID or smartphone.
- Complete Identity Verification: If you can verify your identity, the IRS will provide your IP PIN online immediately. Each year, the IP PIN will refresh, requiring you to retrieve a new one annually.
- Alternative Application Methods: If you’re unable to verify your identity online, you can apply using Form 15227, Application for an Identity Protection Personal Identification Number, or by visiting an in-person Taxpayer Assistance Center.
What to Do If You Suspect IP PIN Fraud
Given the importance of the IP PIN in securing your tax information, keep it confidential. Avoid sharing it with anyone who doesn’t need access to it, and don’t disclose it over the phone or in emails. Only use the IP PIN when filing your tax return or when directly communicating with the IRS. If you believe your IP PIN has been compromised or misused, contact the IRS as soon as possible. They can assist with issuing a new IP PIN if necessary and help prevent further unauthorized access.
Conclusion
For those concerned about the risks of tax-related identity theft, the IRS IP PIN program offers a secure way to protect your tax return from unauthorized filers. Although it requires annual renewal and secure handling, an IP PIN provides substantial peace of mind by ensuring that only you—or someone you authorize—can file a return under your Social Security number.
