Something you might be looking to do this tax filing season is to ensure your taxes are not fraudulently filed. One way to protect your identity from being stolen and used for a fraudulent tax filing is to request the Identity Protection PIN (IP PIN) with the IRS.
The effort by identity thieves to use a stolen Social Security number to file a tax return early and receive a potential tax refund has decreased over recent years, but there is still a threat that it can happen.
The Identity Protection PIN is a six-digit number assigned to taxpayers to be entered on their Federal tax return to verify their identity. It helps prevent identity thieves from filing fraudulent tax returns with a stolen Social Security number. The IP PIN number will only be known by the filer it is assigned to and the IRS.
Historically, the IRS has only issued IP PINs to victims of identity theft. The IRS will mail a CP01A Notice to a confirmed identity theft victim every year that includes their IP PIN.
Starting in January 2021, all taxpayers can request an Identity Protection PIN online at www.irs.gov/ippin. Once you have your IP PIN you will need to enter it when asked by your tax software or by the trusted tax advisor preparing your returns. The correct IP PIN must be used when filing electronic or paper tax returns. Using the incorrect number will result in a rejection of or delay in processing your tax returns.
If you have questions on the benefits of using an Identity Protection PIN for your tax situation, please contact your Untracht Early advisor.