Beginning in January 2020, the IRS expanded the Identity Protection PIN Opt-In Program to all taxpayers who can verify their identities. This means, you can now be proactive in further protecting yourself from identity theft. But, exactly what is it and should you get one? There are pros and cons to consider with this option.
The IP PIN was first created to protect taxpayers whose identities had been stolen. This six-digit number can now be assigned to all eligible taxpayers to prevent the misuse of their Social Security number on fraudulent income tax returns. This PIN offers a high level of security when it comes to protecting people from tax related identity theft crimes.
There are however, some drawbacks. Once you opt into the program, you are in it for life; although the IRS is working on an opt-out option for 2022. Also, you must pass a rigorous identity verification process and your IP PIN number changes annually. The IRS will mail taxpayers a new IP PIN each January. Without your updated IP PIN, it will be very difficult to file your tax return. The IRS will reject any electronic version of your return submitted without your IP PIN. Therefore, your IP PIN should only be shared with your trusted tax advisor. The IRS will never call, text, or email requesting your IP PIN. Beware of scams to steal your IP PIN. In fact, all communication with the IRS is conducted via mail.
If you are interested in obtaining an Identity Theft Protection PIN, please go to:
https://www.irs.gov/identity-theft-fraud-scams/get-an-identity-protection-pin
Please call our office if you would like to discuss the IP PIN option in more detail.