Protect Your Tax Refund from Identity Theft
Tax scams are more prevalent than ever, with sophisticated criminals constantly seeking new ways to steal your money and personal information. One of the most devastating forms of tax fraud is identity theft, where criminals use your Social Security number to file a fraudulent tax return and steal your refund. Fortunately, the IRS offers a simple and effective tool to combat this threat: the Identity Protection PIN (IP PIN).
What is an IRS Identity Protection PIN?
An IRS Identity Protection PIN is a unique six-digit number that acts as an extra layer of security for your tax return. It’s known only to you and the IRS and prevents criminals from filing a tax return using your Social Security number, because if they don’t know your PIN, they can’t successfully submit a return in your name.
Why Get an IP PIN?
The IRS strongly recommends that all taxpayers obtain an IP PIN to protect themselves from tax-related identity theft. This applies to everyone because data breaches can compromise anyone’s personal data. If your personal information gets into the wrong hands, criminals might try to use your Social Security number to file a fraudulent tax return and claim a refund. An IP PIN thwarts this by requiring the correct PIN to file.
How to Get an IP PIN
Fortunately, getting an IP PIN is a straightforward process.
- Online IRS Account: The easiest method is to create or log in to your online IRS account. If you don’t already have an account, you’ll need to verify your identity. It only takes a few minutes to generate an IP PIN once you’re logged in.
- IRS Form 15227: If you’re unable or prefer not to use the online portal, you have an alternative pathway available. However, to apply using IRS Form 15227, you’ll need to meet some criteria. Your adjusted gross income from your most recent tax return must be under $73,000 if you’re a single filer, or under $146,000 if you’re married filing jointly. After submitting the form, you’ll receive a call to verify your identity and your IP PIN via mail within roughly four to six weeks.
- IRS Tax Assistance Center: Another option is to visit a local IRS Tax Assistance Center. You can find a location and schedule an appointment by calling 844-545-5640. Be sure to take two forms of identification, one of which must be a government-issued photo ID.
How to Use Your IP PIN
Once you have your IP PIN, using it is simple:
- On Your Tax Forms: You’ll need to enter it on any Form 1040 used to file taxes, including 1040-NR, 1040-PR, 1040-SR, and 1040-SS. It goes on the line near your signature.
- Tax Software: If using tax software, the program will prompt you for your IP PIN during the filing process.
- Joint Filers: If you and your spouse file jointly and both have IP PINs, you’ll need to enter both.
If you file electronically and forget your IP PIN, your return will be rejected. Filing on paper without it will cause delays while the IRS verifies your identity.
Important Considerations
- Annual Renewal: Your IP PIN is valid for one year, so you’ll need to obtain a new one each tax season to maintain protection.
- Lost or Forgotten PIN: If you’ve lost your IP PIN, you can retrieve it by logging back into your IRS online account to access the IP PIN generator again. If you received your pin via CP01A notice but lost it or never received it, call the special IRS phone number at 800-908-4490.
Protecting your tax refund is essential in today’s environment. Taking the time to get an IRS IP PIN can provide peace of mind and prevent you from becoming a victim of tax-related identity theft. Don’t wait — take action today to secure your tax return.
