Aug
For the last seven years or so, if you were a victim of identity theft, meaning some fraudster used yours, or one of your dependent’s, Social Security number to file a false tax return, the IRS would issue you a six digit Identity Protection Personal Identification Number (IP PIN). You would need this number entered on your tax return in order to electronically file the return or even just to paper file.
This feature is now available to everyone and here are two big reasons why you should get one and one caveat for you to keep in mind if you do!
- The obvious reason is, if you feel like your identity has been compromised in any way this makes sure that no one can file a tax return using your information. If a taxpayer has an IP PIN and a return is filed without the six digit code, the IRS automatically rejects the return.
- If you’re in a contentious filing situation for the legality of a dependent you can request an IP PIN for the dependent and halt any attempts by the wrong individual to claim the dependent. Unless the return has the dependent’s IP PIN attached the return is rejected.
One thing to remember, the IP PIN program is a program for life. That means once you’re in the program, you currently have no opt out ability.
IP PIN documents are issued by US Mail to taxpayers every year typically in December or the early part of January on a CP01A letter. You will receive a different six digit number every year so it’s not like a typical PIN number that you can set and it stays the same forever. It’s imperative that you keep that letter for when we file your return as we will need that six digit number. Should you lose the letter the IRS does allow you to retrieve the number using their online IP PIN tool. If you’re unable to do that online, calling the IRS is the best option but that could take up to 21 days for them to issue you a copy of the letter to the address they have on file.
To sign up for the IP PIN you can do so directly on the IRS website here: https://www.irs.gov/identity-theft-fraud-scams/get-an-identity-protection-pin and click on the blue “Get and IP PIN” button. You can also file a paper application if your AGI is below $73,000 for single filers or below $146,000 for Married Filing Joint filers by filing out this Form 15277 (https://www.irs.gov/pub/irs-pdf/f15227.pdf).