Identifying theft can consist of stolen information, credit card numbers, and bank accounts. However, tax fraud is another element of identity theft that can have a major impact on your finances. The IRS issues an Identity Protection PIN (IP PIN) to help prevent tax-related identity theft. Here’s what you need to know about this important tool.
What Is an IP PIN?
An IP PIN is a six-digit number assigned to eligible taxpayers that helps the IRS verify their identity when they file their taxes. This number is used in addition to your Social Security number (SSN) to help confirm that you are the rightful owner of the tax return being filed.
Who is eligible for an IP PIN?
Identification protection pins used to be only available to taxpayers who had already been victims of identity theft and tax fraud. However, as of 2019, the IRS is offering this service to all taxpayers in an effort to help prevent tax-related identity theft before it happens.
How do I get an IP PIN?
If you’re eligible for an IP PIN, the IRS will mail you a notice with your IP PIN included. You can also retrieve your IP PIN online by logging into your IRS account.
What do I need to do with my IP PIN?
You will need to include your IP PIN on your tax return when you file. This helps the IRS verify that you are the rightful owner of the return.
Is an IRS Pin a good idea?
Having your identity secure is always a benefit. However, getting an IP PIN from the IRS has a few potential drawbacks. For example, losing your IP PIN or forgetting it can make it difficult to retrieve or reset. Additionally, if your tax return is selected for an audit, you may need to provide additional documentation to prove your identity.
File a secure return
Your IP Pin is one of the ways you can file a secure return. You can always use a tax professional to ensure your information is not compromised. Tax experts are also able to help you maximize tax savings and keep the information confidential.
Why did the IRS assign me an identity protection pin?
Overall, an IRS IP is a great protection tool for your private information. You should keep it in a safe place and not share it with anyone. Your PIN is assigned to you specifically to help prevent fraudsters from filing taxes in your name.
If you have questions about your IP PIN or how to use it, contact the IRS directly or speak to a tax professional.
Categorised in: Tax Preparation