Why Is My IP PIN Being Rejected When Filing My Tax Return?

Taxpayers using an Identity Protection Personal Identification Number (IP PIN) may face issues when their IP PIN is rejected during the filing of their tax return. This can lead to confusion and delays, potentially affecting the timely processing of returns and refunds. Understanding the reasons for IP PIN rejection is crucial for resolving these issues efficiently.

Invalid or Expired IP PIN

An IP PIN is a six-digit number assigned by the IRS to protect taxpayers from the misuse of their Social Security number on fraudulent federal income tax returns. A common issue is using an invalid or expired IP PIN, as these numbers are only valid for one tax year. Taxpayers must obtain a new IP PIN annually, typically available in January. Using a previous year’s IP PIN will result in rejection. Taxpayers can retrieve their current IP PIN by accessing their IRS account online or referring to the CP01A notice sent by the IRS.

Incorrect entry of the IP PIN is another frequent problem. Even minor errors, such as transposing digits, can lead to rejection. Taxpayers should double-check the number entered to ensure accuracy. In cases where the IRS issues a new IP PIN, such as after a confirmed identity theft case, using the old IP PIN will also result in rejection.

Typographical or Data Entry Errors

Small typographical or data entry mistakes can cause an IP PIN to be rejected. These errors often involve transposed numbers or entering the IP PIN in the wrong section of a tax return, creating a mismatch with IRS records. Taxpayers should carefully review their entries to avoid such mistakes.

Beyond the IP PIN, errors in other key information—such as Social Security numbers, filing status, or dependent details—can exacerbate the issue. Using tax preparation software with built-in error-checking features can help identify inconsistencies before submission.

Conflicting Filing Information

IP PIN rejection can also result from discrepancies between the information on a taxpayer’s return and IRS records. These mismatches may involve differences in income reporting, filing status, or personal information such as an address change. For instance, if a taxpayer moves but does not update their address with the IRS, the inconsistency could trigger a rejection. Taxpayers can update their address using Form 8822 to avoid such issues.

Discrepancies can also arise from differences between the income reported by taxpayers and the amounts reported by employers or financial institutions. Reviewing IRS transcripts, which summarize income reported to the IRS, can help taxpayers ensure accuracy before filing.

Duplicate Return Filing

Duplicate return filing occurs when more than one tax return is submitted for the same taxpayer within the same tax year. The IRS’s system is designed to detect and flag such duplications to prevent fraud or errors. This can happen if taxpayers attempt to correct mistakes by filing a second return instead of submitting Form 1040-X, the appropriate form for amendments.

Identity theft is another cause of duplicate filings, where fraudulent actors file returns using stolen taxpayer information. Monitoring IRS account activity and promptly addressing IRS notices are critical in safeguarding against such fraudulent attempts.

Suspected Identity Concerns

A rejected IP PIN may indicate that the IRS has flagged suspected identity concerns. The IP PIN system is designed to protect against identity theft, but the IRS may reject a return if it detects suspicious activity. For example, unusual filing locations or significant deviations from prior years’ information can trigger additional scrutiny.

Taxpayers encountering this issue may need to complete Form 14039, the Identity Theft Affidavit, or respond to IRS Letter 5071C for identity verification. Those who have previously been victims of identity theft may face heightened scrutiny, even when using an IP PIN. Contacting the IRS Identity Protection Specialized Unit and providing necessary documentation can help resolve such issues.

Unmet IP PIN Requirements

IP PIN rejection can also result from failing to meet program requirements. The IRS issues IP PINs to eligible taxpayers, either voluntarily or due to prior identity theft incidents. Taxpayers who fail to properly apply for or retrieve their IP PIN may encounter difficulties. Completing the IRS’s Secure Access authentication process is required to access an IP PIN online. Otherwise, taxpayers must request the CP01A notice by mail or contact the IRS for assistance.

Additionally, taxpayers must ensure their filing method supports IP PIN use. While most electronic filing platforms accommodate IP PINs, paper filers may inadvertently omit the number, leading to rejection. Reviewing IRS Publication 5367, which outlines IP PIN procedures, can help taxpayers navigate these requirements effectively.