Tax identity theft is a growing problem that can lead to delayed tax refunds, fraudulent tax filings in your name, and other financial headaches. One effective tool the IRS offers to safeguard your identity is an Identity Protection Personal Identification Number (IP PIN). Optima Tax Relief explains why and how you should use one to protect yourself this tax season. 

What Is an IP PIN? 

An IP PIN is a six-digit number that acts as an additional layer of security when you file your federal tax return. It ensures that only you—or someone authorized by you—can submit a tax return using your Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). If the correct IP PIN is not provided, the IRS will reject any tax return filed in your name, preventing fraudulent submissions. 

Benefits of Using an IP PIN 

  • Prevents Fraudulent Filings: The main advantage of an IP PIN is its ability to prevent criminals from filing a tax return using your SSN. Without the PIN, even if a thief has your personal information, they won't be able to successfully file a return in your name. 
  • Ensures Faster Processing: By stopping fraudulent filings, an IP PIN helps ensure that the IRS processes your legitimate tax return quickly, avoiding delays in your refund. 
  • Peace of Mind: Knowing that your tax information is protected can alleviate the stress of tax season. With an IP PIN, you can rest assured that only authorized individuals can file taxes on your behalf. 

Who Can Get an IP PIN? 

The IRS offers the IP PIN program to various taxpayers under the following conditions: 

  • Taxpayers who have previously experienced tax identity theft: If you've been a victim of tax identity theft in the past, the IRS will automatically issue you an IP PIN to help prevent further fraudulent activity. 
  • Residents of certain states with high identity theft rates: If you live in a state that has high levels of identity theft, the IRS may automatically offer you an IP PIN to help protect your tax information. 
  • Taxpayers who want to opt in voluntarily: Through the IRS's IP PIN Opt-In Program, taxpayers can choose to participate in this security measure, even if they haven't been victims of identity theft. 
  • Verification of Identity: The program is available to any taxpayer who can successfully verify their identity using the IRS's online tools. 

How to Get an IP PIN 

  • Create an IRS Account: If you don't already have one, visit the IRS's IP PIN page to create an online account. 
  • Verify Your Identity: The IRS will require you to verify your identity using their Secure Access authentication process. This process involves providing personal information, financial details, and access to your email and phone. 
  • Retrieve Your IP PIN: Once your identity is verified, the IRS will issue you an IP PIN for the current tax year. Remember, the IRS issues a new IP PIN every year for your protection, so you must retrieve it annually. 

Tips for Using Your IP PIN 

Your IP PIN is private and should only be shared with trusted tax preparers or individuals assisting with your tax return. Do not disclose it to anyone else. Keep your IP PIN in a safe, easily accessible location so you can retrieve it when you need to file your taxes. The IRS issues a new IP PIN each year. Be sure to retrieve your new PIN before starting your tax filing for the year. 

What to Do If You Lose Your IP PIN 

If you lose your IP PIN, don't panic. You can easily retrieve it by logging into your IRS account. If you're unable to access your account or have other issues, you can call the IRS for assistance. They will help you verify your identity and issue a replacement PIN. 

Conclusion 

An IP PIN is a simple yet powerful tool to protect yourself from tax identity theft. By adding this layer of security, you reduce the risk of fraudulent filings and ensure that your tax return is processed quickly and correctly. Don't wait until you've been a victim of tax identity theft—take proactive steps today and secure your IP PIN to enjoy a safer tax season.