Identity theft has become a very serious problem. The Internal Revenue Services offers additional protection if you believe your identity has been stolen or compromised in any way. An Identity Protection PIN is a six-digit number that prevents someone else from filing a tax return using a taxpayer’s Social Security number. The IP PIN is known only to the taxpayer and the IRS, and this step helps the IRS verify the taxpayer’s identity when they file their electronic or paper tax return.

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.
There currently is no opt-out option but the IRS is working on one for 2022.

How to get an Identity 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. See IRS.gov/SecureAccess for what information you need to be successful. There is no need to file a Form 14039, an Identity Theft Affidavit, to opt into the program

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.

All taxpayers are encouraged to first use the online IP PIN tool to obtain their IP PIN. Taxpayers who cannot verify their identities online do have options.

Pederson Tax Services