IRS Offers New Tool to Protect You From Tax Fraud

By: Stacey Nickens

In past years, the IRS has given victims of tax fraud an Identity Protection PIN. When these individuals filed their tax return, they would input their Identity Protection PIN in addition to their Social Security Number. Doing so would give them a second layer of protection against fraudsters trying to file a return with a stolen Social Security Number.

Starting in January 2021, any taxpayer can request an Identity Protection PIN from the IRS. Applying for an Identity Protection PIN can help you protect yourself from becoming the victim of tax fraud.

What is an Identity Protection PIN?

An identity protection personal identification number (IP PIN) is a six-digit number assigned to a taxpayer. The IP PIN will help the IRS further verify your identity when processing your return. Once you receive an IP PIN, it is valid for one year. Each January, you will need to apply for a new IP PIN.

How do you apply for an IP PIN?

There are a number of ways to verify your identity and receive an IP PIN. The easiest method involves using the “Get an IP PIN” tool on the IRS website. You simply need to click here or go to www.irs.gov/identity-theft-fraud-scams/get-an-identity-protection-pin. The IRS website uses Secure Access authentication to verify your identity. However, if you’re unable to use or pass the identity verification process online, you can also use two other verification methods.

Taxpayers with income of $72,000 or less can complete Form 15227, Application for an Identity Protection Personal Identification Number. You mail or fax the form to the IRS. An IRS employee will call you to verify your identity by asking a series of questions. (Please keep in mind that the IRS will not call to request your IP PIN. If someone is asking you to provide your IP PIN over the phone, it is a scam.) If the IRS is able to verify your identity through this process, you will receive an IP PIN for the following tax year.

Some individuals may not be able to verify their identity online and may not be eligible to file a Form 15227. If this is the case for you, you must make an appointment for an in-person identity verification at an IRS Taxpayer Assistance Center. You will need to bring two forms of photo identification to this appointment. Once your identity is verified through this process, you will receive an IP PIN in the mail within three weeks.

What if I was already the victim of tax-related identity theft?

The IP PIN program remains unchanged for previous victims of tax fraud. Taxpayers must still file a Form 14039, Identity Theft Affidavit, if their return is rejected because of a duplicate SSN filing. Once your Form 14039 has been received, the IRS will investigate your case, remove the fraudulent return from your account, and mail you an IP PIN. For security reasons, confirmed victims of tax fraud cannot opt out of the IP PIN program. These individuals can use the above “Get an IP PIN” tool on the IRS website in order to retrieve lost IP PINs already assigned to them.