For many years, taxpayers have requested Identity Protection Personal Identification Numbers (IP PIN) after they discovered that someone had fraudulently filed a tax return in their name in order to claim a refund. In recent years, with data breaches of various companies, many more taxpayers filed for the IP PIN. Once an IP PIN is acquired, you cannot electronically file your tax return without this unique code. This stops fraudulent returns from being electronically filed. Paper returns that are filed without the correct IP PIN will be scrutinized for fraud. An IP PIN essentially locks your tax account.
Generally, when you are a victim of identity theft or confirmed that your data was released in a hacker breach, you can file Form 14039 Identity Theft Affidavit. After filing this form, the IRS will mail a unique PIN to you every year automatically. This is still a viable method of attaining an IP PIN.
However, new for the 2021 tax year, any individual taxpayer can apply for and obtain an Identity Protection PIN. This new program is valid for one year only and will not automatically generate a new pin the following year. If you want another IP PIN the next year, you would have to apply again.
You may want to consider obtaining an IP PIN if your credit cards are compromised or your wallet is stolen. You may be going through a divorce and want to make sure that your return isn’t filed. Or perhaps, you’d just like some extra peace of mind in knowing you have protected your tax return filing for a given year. For all these reasons or no reason at all, you can now get an IP PIN from the IRS.
Learn more and apply for an IP PIN on the IRS website.
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