Here’s a common yet devastating scenario: criminals impersonate you, file a tax return early in the year, claim a large refund, and vanish with the money.
When you file your legitimate return, the Internal Revenue Service rejects it. Their system shows that taxes have already been submitted in your name. This can lead to months, or even years, of frustrating bureaucracy.
The IRS offers a solution: the Identity Protection PIN, or IP PIN. This tool is designed to prevent this type of nightmare in most cases. To get an IP PIN, you register and provide personal information for verification. You’ll then receive a unique six-digit IP PIN to include when filing your taxes each year.
Despite the straightforward process, concerns have recently emerged from the public. Readers have expressed worry about potential data breaches due to recent investigations into IRS computer systems. Questions have also been raised about possible vulnerabilities that could be exploited by hackers, as well as concerns about misuse of IRS data by individuals such as Elon Musk.
Despite these valid concerns, it’s generally recommended to acquire an IP PIN as an added protective measure. James E. Lee, president of the Identity Theft Resource Center and a former cybersecurity executive on an IRS advisory panel, has obtained an IP PIN.
