What the Tech: Protect Yourself from Tax Scams with an IRS Identity Protection PIN
Posted: Jan 31, 2025 4:39 PM CST by WAKA Action 8 News
By JAMIE TUCKER, Consumer Technology Reporter
Tax season is upon us, and while you’re busy gathering financial documents, so are scammers, who are working overtime to steal your hard-earned money.
According to the IRS, tax fraud and scams cost Americans a staggering $5.5 billion in 2023 alone. Whether you’re filing your taxes yourself, using tax software, or hiring a professional, the threat of scams is very real and, unfortunately, growing.
Identity Theft and Tax Scams
One of the most prevalent of these tax scams involves identity theft. In this scheme, criminals steal Social Security numbers and other personal information to file fraudulent tax returns and pocket the refunds. Victims often don’t realize they’ve been targeted until they try to file their own taxes and discover someone has already filed in their name.
Hundreds of thousands of people fall victim to this scam every year. However, there’s a simple, free way to protect yourself: the IRS Identity Protection PIN (IP PIN).
What Is an IP PIN?
An IP PIN is a unique, six-digit number assigned to you by the IRS. It acts as an extra layer of security, ensuring that only you (or your tax preparer) can file your tax return. Without this PIN, no one—including scammers—can submit a return using your Social Security number.
The benefit? Getting an IP PIN is quick, easy, and free. Once you have it, you’ll need to include it on your tax return each year. The PIN is valid for one tax season, and you’ll receive a new one annually if you opt for continuous enrollment.
How to Get Your IP PIN
To request an IP PIN, you’ll need to create an online account with the IRS at https://www.irs.gov. The process is secure and straightforward.
Once your account is set up, you can request your PIN immediately. You’ll have the option to print it out, write it down, or simply log in to your account to retrieve it when needed.
If you work with a tax professional, you’ll need to share your IP PIN with them so they can include it on your return. It’s a small step that can make a huge difference in protecting your refund.
Why You Need an IP PIN Now More Than Ever
The need for an IP PIN has never been more urgent. Last year, over 100 million people had their Social Security numbers exposed in a massive data breach. With so much personal information floating around in the hands of criminals, proactive steps to secure your tax identity are crucial.
The IRS has flagged millions of tax returns as suspicious in recent years, and the agency encourages everyone to file their taxes as early as possible to reduce the risk of fraud. However, filing early isn’t enough—adding an IP PIN to your tax-filing process is one of the most effective ways to keep scammers at bay.
Don’t Wait—Act Now
Tax scams are a billion-dollar business for criminals, but you don’t have to be a victim. By taking a few minutes to request an IP PIN, you can safeguard your refund and your identity. Remember, when it comes to protecting your money, a little effort goes a long way. Don’t let scammers win—take control of your tax security with an IP PIN!
