An identity theft incident in the tax industry can be a nightmare. Imagine filing your tax return and finding out that someone else already has to access your Social Security number. This is what your IRS Identity Protection PIN , also known in the form of an IP PIN, is available. The six-digit code is among the top security measures against identity theft related to taxes. It’s accessible to anyone who needs additional security.
If you’ve not thought of having one before, this is what you have to know, including how to go about applying and the best methods to protect it.
What is an IP PIN?
An IP PIN can be described as a 6-digit number that is only known to you, and the IRS. It’s required when you fill out taxes in the United States in order to confirm that you’re a legitimate taxpayer associated with the Social Security number. Even if another person has access to your personal data, they won’t be able to file tax returns using your SSN without having the proper IP PIN.
Who can get an IP PIN?
When the program was first introduced, the IP PINs were offered only to victims of identity fraud. In the present, the IRS has expanded the program to anyone who can verify their identity, regardless of whether or not they’ve experienced problems previously.
The reasons you may need one as follows:
- If you’ve been through an incident of identity theft.
- You’ve been affected by a data breach.
- If you just want peace of mind when filing.
Victims of identity theft that are confirmed will automatically be issued an IP PIN every calendar year by the IRS without having to reapply.
The most important information regarding IP PINs
Before you choose to buy one, you should know the way in which the program functions:
- Valid for a calendar year: A brand new IP PIN will be generated every year. You’ll have to retrieve (online or by post) your latest code every year.
- The option is voluntary: Highly recommended It’s not mandatory to use the IP PIN, unless a verified person who has been the victim of identity theft, however the IRS strongly recommends it to anyone looking to protect themselves.
- It is only known to you and the IRS: It is this that makes it so effective. It’s not accessible to the public. With stolen SSN information, criminals are unable to electronically file without the proper IP PIN.
- You must be able to prove your identity: The IRS will require you to verify your personal information prior to giving an IP PIN.
- Beware of scams: IRS will never contact or email you to request an IP PIN. These kinds of requests are a red flag.
How to get an IP PIN
This is the procedure: It is important to keep in mind that tax professionals are not able to solicit to obtain an IP PIN from their client. Every taxpayer has to apply for the PIN themselves.
1. Make use of the IRS online tool
The quickest way to do this is via the Create an IP PIN page at IRS.gov. You’ll sign in using an existing IRS account or register an account if you do not have access. The system will assist you with identification verification and issue your IP PIN immediately.
2. If you are unable to verify their identity online
If you don’t pass the online identity test however, you are still eligible to apply for a permit by submitting Form 15227, Application to an Identity Protection Personal ID number (IP PIN) and only if you earn less than $84,000 for an individual ($168,000 lesser for married couples who file jointly). The IRS will contact the applicant to confirm your identity and then will mail you your IP PIN.
3. Verification in person
A different option would be to set up an appointment with one of the IRS Taxpayer Assistance Centre. You’ll need two proofs of ID, and after verification you’ll be issued your PIN IP via mail.
Best practices when using your IP PIN
Once you’ve got your IP PIN it’s your responsibility to ensure it’s secure.
- Don’t share: Never disclose it to other than the IRS or a trusted tax professional. Don’t share it with anyone else: not your friends or family members, nor anyone who claims that they are or from the IRS who contacts you in a sudden manner.
- Keep it safe: Save it alongside your tax forms or in a safe digital vault.
- Change your IP PIN each year: An IP PIN is only valid for the calendar year the year it was issued. It is required to use the latest one in order to accept it.
- Beware of frauds: If you receive an unwelcome call, text or email asking you to enter an IP PIN number, it is not the IRS, it’s a scammer.
Common questions about IP PINs
Do I require an IP PIN in order to file?
No. If you’re not a victim of identity theft relating to tax It’s not required. It greatly decreases the chance of someone else making a false tax return by using your personal data.
What happens if I lose it?
It is possible to retrieve it via the IRS Find an IP PIN Tool after confirming your identity.
Can it hold up my refund?
No. In fact, it can help to avoid delays due to fraudulent filings. However, using the wrong IP PIN may result in your return being rejected.
Can my spouse and children be eligible for one?
Yes, provided they are able to confirm their identity using the IRS process.
Tax professionals should be encouraging clients to think about IP PINs
Although tax professionals aren’t able to get IP PINs on behalf of their clients however, they are able to, and should provide clients with information about the advantages. This IP PIN program is among the most simple and efficient ways to prevent identity theft related to taxes prior to it happening. If you’ve had to deal with the trauma of losing their identity, it’s an important step in the right direction.
Consider:
- A single-page IP PIN information sheet in your client portal or office
- Each January, send reminder emails to get the latest IP PIN
- Guide clients through how to use the IRS’ How to get an IP PIN page during a consultation
Conclusion
Securing the IRS Identity Protection PIN (IP PIN) is among the most simple and effective ways to protect your tax identity. With a unique six-digit number that only you and the IRS know will have access to an additional security layer against fraud in tax filings as well as unauthorized access gain to personal data. Whether you get the code online, via mail, or by assistance, the process is easy and worth the security it brings.
We at Parr & Ibarra CPA Firm in Keller, Texas, are dedicated to help you manage every aspect of your tax obligations with confidence and clarity. If you require assistance to obtain your IP PIN, or have concerns regarding protecting your identity as a financial person, our team is available to help you through every step of the procedure.
