An IP PIN number is a six-digit code issued by the IRS to verify your identity when filing taxes. It prevents someone else from filing a fraudulent return using your Social Security number.
The IRS mails a new IP PIN to you each year, usually in December or January. You must enter this number on your tax return to confirm your identity. The IRS validates the PIN against its records before processing your return.
If you don't receive an IP PIN but suspect fraud, you can request one through the IRS website. The process involves verifying your identity through personal details, financial records, or other secure methods.
There are two types of IP PINs:
The IRS reports that IP PINs reduce fraudulent tax returns by 60%. If you're a victim of tax identity theft, an IP PIN is the only way to file your return electronically. Without it, you'll need to file a paper return, which can delay your refund.
For example, if a thief files a fraudulent return using your SSN, the IRS will reject it because the IP PIN won't match. This gives you time to report the fraud and resolve the issue.
Some people confuse the IRS IP PIN with a phone carrier PIN, such as a Verizon PIN number or AT&T prepaid PIN number. These are unrelated. The IRS IP PIN is specifically for tax-related identity verification.
Another mistake is assuming that once you have an IP PIN, you're permanently protected. The IRS issues a new IP PIN each year, so you must use the correct one for the current tax year.
To request an IP PIN, visit the IRS website and follow the steps under "Get an IP PIN." You'll need to verify your identity through personal details, financial records, or other secure methods. Once verified, the IRS will mail your IP PIN to you.
An IP PIN number is a important tool for protecting your tax identity. By requesting one, you add an extra layer of security to your tax return and reduce the risk of fraud. If you suspect you've been a victim of tax identity theft, an IP PIN is essential for filing your return correctly.