We here at Scott’s Tax Time are concerned about your personal information security. We take many steps to ensure your security in our office. However there has been a large increase in Tax Fraud regarding theft of personal information on a national level. Fraudulent tax returns have been filed using stolen SS numbers.
In an effort to reduce the fraud the IRS has implemented a plan using an Identity Protection Personal Identification Number referred to as ID PIN. This PIN is issued to the individual by the IRS annually.
An IP PIN is a six-digit number assigned to eligible taxpayers that helps prevent the misuse of your Social Security number on fraudulent federal income tax returns. You can’t use an IP PIN as your e-file signature PIN.
An IP PIN helps the IRS verify a taxpayer’s identity and accept their electronic or paper tax return. When you have an IP PIN, it prevents someone else from filing a tax return with your SSN.
If a return is e-filed with your SSN and an incorrect or missing IP PIN, the IRS system will reject it until you submit it with the correct IP PIN or you file on paper. If the same conditions occur on a paper-filed return, the IRS will delay its processing and any refund you may be due for your protection while they determine if it’s yours.
If you have already been a victim you may have received a CP 01A from the IRS. You should have received this by mid-January.
Important: You currently can’t opt out once you get an IP PIN. You must use an IP PIN to confirm your identity on all federal tax returns you file this year and in subsequent tax years. If you e-file your return and your IP PIN is missing or incorrect, our system will reject your return. Filing a paper return with a missing or incorrect IP PIN delays it’s processing. This is for your protection so they can determine it’s your return.
Our firm highly recommends to our clients that they register for an ID PIN even though they have not yet been a victim of Identity Theft. This will reduce the chance from some else filling a return using there SS number.
Getting Your IP PIN
To get your IP PIN, you must verify your identity online. You'll need to have immediate access to your email account to receive a confirmation code. If you are eligible, you’ll receive your IP PIN online once they verify your identity. The IRS will send you a new IP PIN each December by postal mail. You can register at the IRS website. There is a link on our web site.