New IRS Program Prevents Identity Theft on Tax Returns
Identity theft happens when a person deliberately uses someone else's identity as a method to gain financial advantages or obtain credit and other benefits. The person whose identity has been stolen may suffer adverse consequences, especially if they are falsely held responsible for these criminal actions. Personally identifiable information generally includes a person's name, date of birth, social security number, driver's license number, bank account or credit card numbers, PINs, electronic signatures, fingerprints, passwords, or any other information that can be used to access a person's financial resources.
In January, the IRS expanded the Identity Protection PIN Opt-in program to all taxpayers who can verify their identity. The Identity Protection PIN (IP PIN) is a six-digit code known only to the taxpayer and to the IRS. It helps prevent identity thieves from filing fraudulent tax returns using a taxpayers’ personally identifiable information. “This is a way to, in essence, lock your tax account, and the IP PIN serves as the key to opening that account,” said IRS Commissioner Chuck Rettig. “Electronic returns that do not contain the correct IP PIN will be rejected, and paper returns will go through additional scrutiny for fraud.” If an identity thief files a return using your personal information and does so before you file your return, they are committing fraud and can claim a refund in your name and cause your return filing to be rejected. The IP PIN helps prevent that from happening. If you have that PIN established with the IRS and an identity thief attempts to file a return using your information, but without that PIN, their return will be rejected.
The IRS launched the IP PIN program nearly a decade ago to protect confirmed identity theft victims from ongoing tax-related fraud. In recent years, the IRS expanded the program to specific states where taxpayers could voluntarily opt into the IP PIN program. Now, the voluntary program is going nationwide.
Here are a few key things to know about the IP PIN Opt-In program:
This is a voluntary program.
You must pass a rigorous identity verification process.
Spouses and dependents are eligible for an IP PIN if they can verify their identities.
An IP PIN is valid for a calendar year.
You must obtain a new IP PIN each filing season.
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.
How to get an IP PIN
Taxpayers who want an IP PIN for 2021 should go to IRS.gov/IPPIN and use the Get an IP PIN tool. This online process will require taxpayers to verify their identities using the Secure Access authentication process if they do not already have an IRS account. Once taxpayers have authenticated their identities, their 2021 IP PIN immediately will be revealed to them. Once in the program, this PIN must be used when prompted by electronic tax returns or entered by hand near the signature line on paper tax returns.