What Is an IP PIN and Do You Need One for Tax Filing?
Learn about the IP PIN, its benefits for tax security, how to obtain one, and the process for annual renewal and recovery.
Identity theft remains a significant concern for taxpayers, especially during tax season. To address this issue, the IRS offers an Identity Protection Personal Identification Number (IP PIN), which provides an added layer of security when filing taxes.
Eligibility Criteria
The IP PIN was initially reserved for identity theft victims but is now available to all taxpayers who choose to opt into the program through the IRS’s online portal. This expansion helps protect against tax return fraud. Taxpayers automatically eligible include those who have experienced tax-related identity theft and residents of states with high tax fraud rates. Additionally, a pilot program allows residents in specific locations to apply for an IP PIN, even without a history of identity theft. For the most up-to-date guidelines, taxpayers should check the IRS website.
Steps to Request
Taxpayers can request an IP PIN by visiting the IRS website and using the “Get an IP PIN” tool. Required documentation includes a valid Social Security Number or Individual Taxpayer Identification Number and financial details from the previous year’s tax return. The IRS uses multi-factor authentication, which may involve answering security questions, providing financial account information, and receiving a verification code via text or email. Once verified, the IP PIN is displayed and sent to the taxpayer’s registered address or email.
Annual Renewal
The IP PIN must be renewed annually. Each January, the IRS issues a new IP PIN for the upcoming tax season. Taxpayers must retrieve their new IP PIN by completing the same verification process used during the initial request. The new IP PIN is valid for one tax year, ensuring ongoing protection.
Recovering a Lost IP PIN
If an IP PIN is lost, taxpayers can recover it through the “Get an IP PIN” online tool. Identity verification is required by providing personal and financial information. If online retrieval is unsuccessful, taxpayers can call the IRS helpline for assistance. They should be prepared to answer detailed questions about their tax history and personal information to verify their identity.
Filing Returns Using Your IP PIN
The IP PIN must be included in the designated field on the tax return. Most tax software prompts for the IP PIN during electronic filing, while paper filers should write it clearly to avoid processing delays. Failure to include the IP PIN may result in the rejection of the return, requiring re-submission. This measure protects taxpayers from identity theft and ensures the integrity of the filing process.