The IP PIN Glow-Up: The Tiny Tax Move That Saves You a Giant Headache

We’ve all heard the horror stories of identity theft, but for most, it seems like a faraway problem. Something that will never touch you. That’s great… until it does affect you.

Fortunately, there’s a simple way to protect yourself. Using IP PIN makes life much more difficult for any identity thieves and can save you a lot of trouble. Like many things in life, it’s better to be safe than sorry and preparing for the possibility of a problem makes things easier when it does go wrong.

What’s an IP PIN, Anyway?

An Identity Protection PIN, otherwise known as an IP PIN, is an IRS-issued six-digit number that protects your identity. Essentially, it confirms that you are the person who is actually filing the tax return. If someone steals your Social Security number and tries to file without the issued IP PIN, it will be caught almost immediately. This makes it very difficult for fraudulent returns to reach the IRS.

Is It Really That Big of a Deal?

Roughly 2 million returns are flagged by the IRS every year for potential identity theft, so it’s definitely something you should educate yourself about. Identity thieves usually get your SSN and name from data breaches (the ones you usually ignore, because who really cares) or from phishing schemes.

With that information, scammers can easily file for a tax refund, which is sent to their own bank account, a mail drop, or prepaid debit cards. Often, you won’t even know you’ve been targeted until you get a notice from the IRS saying you have a duplicate filing or to tell you the refund was sent elsewhere. It can take nearly two years to resolve this issue, so it’s best to avoid it in the first place.

Grab That IP PIN Now… and How to Use It

The best time to get your IP PIN is before you actually need it. That is, grab it immediately to avoid dealing with fraud during the upcoming tax season.

You can usually just request the PIN through your IRS Online Account. If that doesn’t work for you, an in-person appointment at a Taxpayer Assistance Center can work, too. It’s something you need to do yourself, though. While your tax expert can handle many of your tax-related tasks, this is one you will need to provide ID for.

Once you have your IP PIN, you need to use it on any tax forms you submit. If you use tax prep software, it should be entered there. If you have a tax expert working with you, then you’ll need to let them know what the PIN is so they can file on your behalf.

Still have questions about how to protect against tax fraud? Schedule an appointment with Ask Anna Tax today and we’ll help you navigate what needs to be done.