No one wants their tax refund stolen. Unfortunately, that happens more frequently than individuals would expect. Criminals can use other people’s stolen Social Security numbers to file false tax returns. They access refunds that they do not own. When the actual taxpayer accesses his/ her tax returns later on, the money has been gone a long time by then.
The IRS has a tool in its arsenal to combat this issue. It is an Identity Protection PIN or an IP PIN in short form. We are here to discuss what it is, how it works, and why it can protect your refund.
What is an IP PIN?
An IP PIN is a six-digit number that the IRS will assign you. It is not the same as your Social Security number. It is a secret tax code.
Once you get an IP PIN, you will have to enter it when you submit a federal tax return. When an impersonator attempts a return under your Social Security number but does not possess your IP PIN, the IRS will reject that fake return.
Why an IP PIN Is Useful
- Prevents Identity Theft: A thief cannot successfully file under your name without your unique PIN.
- Safeguards Your Refund: You receive the money that belongs to you, not some con artist.
- Peace of Mind: It feels great to have an added layer of insurance on your tax return.
Who can get an IP PIN?
Previously, the IRS offered IP PIN just to people who were targeted by identity thieves in the past. These days, anyone can apply for one. If you want that extra layer of security, you can get it.
How Do You Get One?
1. Visit IRS.gov: Enter “Get an IP PIN” in the search box.
2. Sign up or access the IRS account: You will need to authenticate yourself.
3. Get your PIN online: Once the IRS has checked who you are, they will give you your six-digit number straight away.
If you are unable to obtain your IP PIN online, you can also request it by mail.
Things to Keep in Mind
- You will receive a new IP PIN annually. It will no longer be usable.
- Do not give your IP PIN to anyone except a trustworthy tax preparer.
- If you have lost your IP PIN, you can obtain a new one in your IRS account.
A Simple Example
Think of your Social Security number as a key. Uncovered, anyone who finds that key can get into your tax account. An IP PIN is like installing a second lock on the door. Even if a thief has the key, they still cannot get in without the PIN.
Final Word
You earned your refund. You want to protect it. You do not want a stranger to steal it by pretending to file a tax return on your behalf. It is free, easy, and mighty: the IRS IP PIN. It is your tax shield.
At AutomaticTaxReturns.com, we provide simple tips on how to make your taxes safe and easy. An IP PIN might be the easiest action you can take this year to protect your refund.
See below on how to apply for the IRS IP PIN.
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