Washington News

The Internal Revenue Service (IRS) Security Summit partners reminded taxpayers they can be protected against tax-related identity theft with an IRS Identity Protection PIN. These PINs are a strong defense against identity thieves. You can obtain an IP PIN through your IRS Online Account.

IRS Commissioner Danny Werfel stated, "To protect against continuing and evolving threats from identity thieves, these two special tools provide an extra layer of security for taxpayers and tax professionals. The IRS and the Security Summit urge people to sign up for both IP PINs and the Online Account to help protect their valuable information as well as avoid tax problems down the road."

The IP PIN is also supported by the Electronic Tax Administration Advisory Committee (ETAAC). ETAAC's annual report states, "The IP PIN method provides strong protection against stolen identity tax refund fraud and effectively locks out many fraudsters from e-filing using that taxpayer's social security number."

There are currently only about 500,000 taxpayers with an IP PIN. However, the Federal Trade Commission notes that there are more than 1.1 million reports of identity theft each year.

Taxpayers should be careful to protect their IP PIN. They should share that IP PIN only with a trusted tax preparer. Tax professionals should not store a client's IP PIN on their computer system. If the computer of the tax preparer is compromised by an identity thief, that individual could gain access to the client's IP PIN.

The IRS emphasizes that it will not call or text a taxpayer or a tax professional to request an IP PIN. If a taxpayer or tax professional receives such a call or text, it is coming from a fraudster.

Understanding the basics of the IP PIN is helpful for both taxpayers and tax preparers. The IP PIN is a six-digit number. If there has been proven identity theft, the IRS will assign an IP PIN to a taxpayer to ensure that future tax filings are coming from the correct individual.

If you file an electronic tax return, your software will prompt you to type the IP PIN next to the signature line. An IP PIN is valid for one year and taxpayers will receive a new IP PIN the next year. The taxpayer must verify his or her identity to obtain the IP PIN. It is issued only to the taxpayer and not to the tax professional.

Taxpayers may initiate the process through the "Get an IP PIN" webpage on IRS.gov. The preferred method is to validate your identity online or on the phone with an IRS employee. Individuals with an income of less than $79,000 or married couples with income of $158,000 or less may also file IRS Form 15227, Application for an Identity Protection Personal Identification Number. The IRS will call to validate your identity and then issue an IP PIN.