An Identity Protection PIN, or IP PIN, is a six-digit code that basically serves as a special password for people whose Social Security number or other personal identifier has been compromised. The IRS issues new IP PINs each year throughout December and early January. And anyone who has an IP PIN must include it on all tax filings.
IP PINs, which have been in use since 2011, are different from the 5-digit PIN assigned to all e-filers. The e-filer PINs serve a similar purpose, though: to thwart identity thieves armed with a few pieces of personal information from stealing taxpayers’ refunds. Below, you can learn both how to get an IP PIN and how to use one to its full advantage.
How To Get An IP PIN
The IRS only issued IP PINs to about 2% of taxpayers during the 2016 filing season. So they’re not easy to get. In fact, you must belong to one of the following four groups to get an Identity Protection PIN:
- You Received An “Opt-In” Letter: This is merely an invitation to get a PIN. It doesn’t mean you’re a victim of fraud, and you don’t have to accept. But you might as well, considering that claiming an IP PIN is quite easy and can go a long way toward keeping your identity safe.
- You Last Filed In Florida, Georgia or DC: These areas are part of an IRS pilot program testing IP PINs among the broader population – not just identity-theft victims. As a result, all residents of those jurisdictions are welcome to get one.
- You’re A Tax-Fraud Victim: If your tax return was stolen and the IRS has resolved your case, you should have received your IP PIN in the mail. In such cases, use of an IP PIN isn’t optional.
- Your Previous PIN Was Compromised: The IP PIN program had its own run-in with fraud. In March 2016, the IRS announced that it had temporarily suspended its online tool for resetting forgotten PINs due to security concerns. Through February 2016, the organization said, roughly 800 fraudulent returns including IP PINs had been caught.
So if you previously had an IP PIN and were not issued a new one, or you don’t remember what your PIN is, you might have to go through the verification process all over again.
Assuming you’re eligible, you will need to validate your identity via the IRS website. You will need to provide:
- Date of birth
- Mailing address from your most recent return
- Credit card or loan account number
- Social Security number
- Filing status
You’ll also need access to your email and a mobile phone account with your name on it for the purpose of two-factor authentication. In short, this is helpful because it’s unlikely that an identity thief has access to your cell phone and email in addition to all of your personal information.
Using Your IP PIN
If you are assigned an Identity Protection PIN, you will be required to list it on whichever of the following forms applies to your situation:
- Form 1040: U.S. Individual Income Tax Return
- Form 1040A: U.S. Individual Income Tax Return (Standard Deduction)
- Form 1040EZ: Income Tax Return for Single and Joint Filers With No Dependents
- Form 1040SS: U.S. Self-Employment Tax Return
- Form 1040PR: Spanish-language version of Form 1040SS
- Form 2441: Child and Dependent Care Expenses (dependent’s IP PIN; e-file only)
If you either omit your IP PIN or enter it incorrectly – or do so with a spouse’s or dependent’s PIN, if applicable – it will significantly delay processing of your return and your ultimate receipt of any refund you may be owed.
Furthermore, it’s important to note that an IP PIN won’t keep you safe from all forms of fraud. So it shouldn’t be used as a replacement for credit monitoring or any other preventive measures. And if you’re not currently enjoying the protection and peace of mind that comes from immediately knowing about any important changes to your credit report, you can sign up for free 24/7 credit monitoring on WalletHub.
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