On January 12, 2021, the IRS expanded its Identity Protection PIN (IP PIN) to include all taxpayers who can verify their identity. Previously, the IP PIN Program was only for taxpayers who had confirmed cases of identity theft.
The IP PIN is a 6 digit number known only to IRS and the taxpayer. It is designed to help prevent identity thieves from filing fraudulent tax returns using another taxpayer’s social security number.
According to IRS Commissioner Chuck Rettig, “This is a way to, in essence, lock down your tax account and the IP PIN serves as the key to opening that account. Electronic returns that do not contain the correct IP PIN will be rejected, and paper returns will go through additional scrutiny for fraud.”
A few things to know about the IP PIN Program are:
*This is a voluntary program.
*You must pass a rigorous identity verification process
*Spouses and dependents are eligible to participate provided they can verify their identies.
*An IP PIN is valid for one year.
*You must obtain a new IP PIN for each tax year.
*The online IP PIN tool is offline between November and mid-January each year.
*Correct IP PINs must be entered on electronic and paper tax returns to avoid rejections and delays.
*Never share your IP PIN with anyone but your trusted tax provider. The IRS will never call, text, or email requesting your IP PIN. Beware of scams to steal your IP PIN.
*There currently is no opt-out option but the IRS is working on one for 2022.
Taxpayers who want an IP PIN should go to irs.gov/IPPIN and use the Get an IP PIN tool. This online process requires taxpayers to verify their identities using Secure Access authentication process if they do not already have an IRS account.
Once taxpayers have authenticated their identities, their 2021 IP PIN is revealed to them immediately. Once in the program, this PIN number must be used when prompted by electronic tax returns or entered by hand when filing a paper return. Once in the Program, the IP PIN will be mailed to the taxpayer each year.
Taxpayers whose adjusted gross income is $72,000 or less may complete Form 15227, Application for an Identity Protection Personal Identification Number. This form can be mailed or faxed to IRS.
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