Tax-related identity theft remains one of the most pervasive forms of fraud affecting American taxpayers. Each year, criminals steal Social Security numbers and personal information to file fraudulent tax returns, claiming refunds that rightfully belong to legitimate taxpayers. The Internal Revenue Service has developed a powerful tool to combat this growing threat: the Identity Protection Personal Identification Number (IP PIN).
This comprehensive guide explains what an IP PIN is, who should consider obtaining one, and how this six-digit number can serve as a critical line of defense against tax fraud.
Understanding the IRS IP PIN
An IP PIN is a six-digit number assigned by the IRS that helps prevent someone from filing a fraudulent tax return using a taxpayer's Social Security number or Individual Taxpayer Identification Number (ITIN). This unique identifier acts as an additional layer of authentication when filing federal tax returns.
The IP PIN program was initially created to assist confirmed victims of tax-related identity theft. However, the IRS has since expanded the program, making it available to all taxpayers who wish to proactively protect their tax accounts from potential fraud.
Key characteristics of the IP PIN include:
- It is known only to the taxpayer and the IRS
- A new IP PIN is generated annually for enhanced security
- It must be included on all federal tax returns filed during the calendar year
- It applies to the primary taxpayer, spouse, and dependents who qualify
Who Should Consider Obtaining an IP PIN
The IRS assigns IP PINs automatically to taxpayers who have been confirmed victims of tax-related identity theft. However, several other circumstances may warrant obtaining this protective measure.
Automatic Assignment by the IRS
Taxpayers may receive an IP PIN automatically if:
- IRS records indicate multiple tax returns were filed using the same Social Security number
- A tax return was rejected because someone already filed using that information
- IRS wage and income records show earnings from an unfamiliar employer
- The IRS identifies the taxpayer as a possible victim of tax-related identity theft
- The taxpayer received an IRS notice regarding suspicious activity on their tax account
Voluntary Enrollment
The IP PIN program is voluntary and strongly encouraged for all taxpayers who want to proactively protect their identity. Individuals who have not been victims of identity theft may still benefit from enrolling, particularly those who:
- Have had personal information compromised in a data breach
- Suspect their Social Security number may have been exposed
- Want additional peace of mind when filing tax returns
- Have experienced non-tax-related identity theft in the past
How the IP PIN Protects Taxpayers
The IP PIN serves as a verification tool that signals to the IRS that a tax return is authentic. When a return is submitted with the correct IP PIN, the IRS can process it with confidence that it came from the legitimate taxpayer.
The Protection Mechanism
If someone attempts to file a fraudulent return using a taxpayer's Social Security number but does not have the correct IP PIN, the IRS will reject the return. This rejection prevents criminals from claiming refunds in the taxpayer's name, even if they have obtained other personal information through data breaches or phishing schemes.
The IP PIN must be included on:
- Current year federal income tax returns
- Prior year tax returns filed during the current calendar year
- Amended tax returns (Form 1040-X)
- Any electronically filed or paper-filed federal tax return
Annual Renewal for Enhanced Security
The IRS generates a new IP PIN each year for security purposes. This annual renewal ensures that even if an IP PIN is somehow compromised, it will only be valid for a limited time. Taxpayers enrolled in the program receive their new IP PIN before each filing season, typically in December or January.
How to Obtain an IP PIN
Taxpayers have several options for obtaining an IP PIN, depending on their circumstances and preferences.
Online Application Through IRS.gov
The fastest and most convenient method is through the Get an IP PIN tool on IRS.gov. To use this online tool, taxpayers must:
- Create or access an existing IRS Online Account
- Complete identity verification through ID.me
- Pass a rigorous authentication process
- Request their IP PIN through the secure portal
Taxpayers who already have an IP PIN can also use this tool to retrieve their current number if they have misplaced it.
Alternative Methods
For taxpayers who cannot verify their identity online, alternative options include:
Form 15227: Taxpayers with an adjusted gross income of $79,000 or less (or $158,000 for married filing jointly) can submit this form to request an IP PIN by mail. The IRS will contact the applicant by telephone to verify their identity.
In-Person Verification: Taxpayers can schedule an appointment at a local IRS Taxpayer Assistance Center to verify their identity in person and receive an IP PIN.
Automatic Mailing: Confirmed identity theft victims and those identified by the IRS as potential victims will receive their IP PIN via CP01A Notice in the mail.
Critical Security Considerations
Protecting the IP PIN is essential for maintaining its effectiveness as a security measure.
What Taxpayers Should Never Do
The IRS emphasizes that it will never call, email, or text taxpayers to request their IP PIN. Any communication requesting this information through these channels is a scam attempt. Taxpayers should:
- Never share their IP PIN in response to unsolicited communications
- Never provide their IP PIN via email or text message
- Never give their IP PIN to anyone claiming to be from the IRS over the phone
Authorized Sharing
The IP PIN should only be shared with:
- The IRS when filing a tax return
- A trusted tax preparation provider who is preparing the taxpayer's return
Tax professionals need the IP PIN to successfully submit a client's return. Taxpayers should provide this information directly to their preparer through secure means.
What to Do If an IP PIN Is Lost or Not Received
Taxpayers who misplace their IP PIN or do not receive it before filing season have options for retrieval.
Online Retrieval
The fastest method is to use the Get an IP PIN tool on IRS.gov. Taxpayers with an IRS Online Account can retrieve their current IP PIN immediately through this secure portal.
Contacting the IRS
Taxpayers who cannot access the online tool may contact the IRS directly for assistance. However, wait times may be lengthy during peak filing season, so online retrieval is strongly recommended when possible.
Filing Without an IP PIN
If a taxpayer has been assigned an IP PIN but files without it, the return will be rejected if filed electronically or delayed if filed on paper. The IRS may require additional verification steps, which can significantly delay refund processing.
Special Considerations for Dependents
Dependents who have been victims of identity theft or who are identified by the IRS as potential victims may also receive IP PINs. Parents or guardians filing on behalf of minor children must include the child's IP PIN on the tax return.
Taxpayers can obtain IP PINs for their dependents through the same methods available for primary taxpayers, though additional verification may be required.
Taking Action to Protect Tax Identity
Tax-related identity theft can cause significant financial hardship and administrative burden for victims. The IP PIN program offers a straightforward, effective method for protecting against this type of fraud.
Taxpayers who have experienced identity theft, data breaches, or who simply want additional protection should consider enrolling in the IP PIN program. The process is free, and the protection it provides can save considerable time and stress.
For assistance with tax preparation and guidance on protecting tax identity, taxpayers may contact TIG Tax Services. Professional tax preparers can help ensure that IP PINs are properly included on returns and that all security measures are in place for a smooth filing experience.