Protect Your Tax Refund From Identity Theft
Tax scams are an unfortunate reality, and they’re becoming increasingly sophisticated. With data breaches becoming more frequent, the risk of identity theft is significant. Fortunately, the IRS offers a simple, effective tool to protect your tax refund from falling into the wrong hands: the Identity Protection Personal Identification Number, or IP PIN.
Getting an IP PIN from the IRS can prevent identity thieves from filing a fraudulent tax return using your name and Social Security number. This proactive step can save you a lot of time, money, and stress.
What is an IRS Identity Protection PIN?
An IRS Identity Protection PIN (IP PIN) is a unique six-digit number assigned to you by the IRS. This PIN helps prevent criminals from filing fraudulent tax returns in your name. It acts as an extra layer of security, restricting anyone else from using your Social Security number to file a return.
How to Create an IP PIN
Creating an IP PIN is easy and takes only a few minutes if you have an existing IRS online account. If you don’t already have an account, you’ll need to create one and verify your identity. Here’s how:
- Online: Visit the IRS website and navigate to the “Get an Identity Protection PIN” page. Follow the instructions to create your PIN.
- By Phone: Create an IRS account online or get an IP PIN through Form 15227, then you’ll receive a phone call from the IRS to confirm your identity. You will receive your IP PIN via mail roughly four to six weeks after the call.
- In Person: You can also visit a local IRS Tax Assistance Center and make an appointment by calling 844-545-5640. Be sure to bring two forms of identification, including a government-issued photo ID.
How to Use Your IP PIN
Once you have your IP PIN, you’ll need to include it when you file your taxes. Enter the IP PIN on the line where you would sign your tax return on any of the Forms 1040 that you use to file taxes, including 1040-NR, 1040-PR, 1040-SR and 1040-SS.
- Tax Software: Most tax software programs will prompt you for your IP PIN during the filing process. If you and your spouse each have IP PINs, you’ll both need to enter them when filing jointly.
- Electronic Filing: If you file your taxes electronically and forget to include your IP PIN, your tax return will be rejected.
- Paper Filing: If you file on paper and forget to include the IP PIN, your return will be delayed for extra identity verification.
What to Do If You Lose Your IP PIN
If you forget or lose your IP PIN, here’s what to do:
- Online: If you created the IP PIN using the IRS’s online self-service tool, simply go back to the IP PIN generator page on the IRS website.
- CP01A Notice: If you received your IP PIN via a CP01A notice and lost it, call 800-908-4490. The IRS will verify your identity and mail you a replacement PIN within 21 days.
- Important Exception: Note that after October 14, you can’t retrieve your IP PIN from a CP01A notice for the current year if you didn’t file a 1040 or 1040 PR/SS form for the current and previous year. In this scenario, the IRS recommends you file your taxes on paper; although there will be delays, there will be identity verification procedures that should resolve the issue.
Ongoing Protection
Your IP PIN is valid for one calendar year. You’ll need to obtain a new one each tax season to maintain protection against identity theft. If you received an IP PIN from the IRS via a CP01A notice, the IRS will continue to mail you a new PIN each year before the tax season, usually in December or January. The IRS notes that taxpayers enrolled in the IP PIN program who have not been victims of tax-related identity theft can opt out of the IP PIN program by using their online account.
Protecting your tax refund is a crucial step in safeguarding your financial security. By taking a few minutes for an IP PIN, you can significantly reduce the risk of becoming a victim of tax-related identity theft.
