Search Articles

Find Attorneys

IRS: Request an IP PIN to Protect Against Identity Theft

Man sits with smartphone in hand looking at digital 1040 IRS tax form on desktop computer.In 2023, consumers across the United States lost a total of more than $10 billion to fraud, according to the Federal Trade Commission. More than a million of them were victims of identity theft, with reports of these and other types of scams up from the previous year.

With identity theft and taxpayer fraud on the rise, the Internal Revenue Service (IRS) is encouraging taxpayers to take extra caution when filing tax returns. One simple way to help safeguard your identity is to create an identity protection personal identification number (IP PIN) through the IRS. An IP PIN is a six-digit number that helps the IRS verify your identity when you are filing your tax return.

Background and Purpose of the Identity Protection PIN Program

The IP PIN program was introduced to help combat the growing problem of tax-related identity theft. In these cases, fraudsters use stolen Social Security numbers (SSNs) and other personal information to file false tax returns and claim fraudulent refunds. Identity theft in tax filing has become a major issue for the IRS, causing financial losses and delays for victims who have to work with the agency to sort out the theft.

Local Elder Law Attorneys in Your City

Elder Law Attorney

Firm Name
City, State

Elder Law Attorney

Firm Name
City, State

Elder Law Attorney

Firm Name
City, State

The IP PIN program was initially implemented to help higher-risk groups of taxpayers, such as high-net-worth individuals and those who had previously reported identity theft to the IRS. However, as tax-related identity theft grew, the IRS expanded the program to allow all taxpayers to request an IP PIN voluntarily. This move empowers taxpayers to be proactive in protecting their tax filings.

How the IP PIN Program Works

Taxpayers who enroll in the program must use their IP PIN when filing their federal tax return, either electronically or on paper. The IP PIN helps verify the taxpayer’s identity, ensuring that only authorized individuals can submit a return with their SSN. If an individual’s IP PIN is missing or incorrect, the IRS will reject the filing, helping prevent unauthorized filings.

You can receive an IP PIN through the IRS website by verifying your identity using the “Get an IP PIN” online tool. Once enrolled, the IRS issues a new IP PIN each year to maintain the security of your information. You can always retrieve your IP PIN if you lose it; find instructions on how to do so via the IRS website.

Why Security in Tax Filing Is Important

Paying taxes is not only mandatory but also helps to keep the government running. However, doing so can expose individuals to potential risks, especially when done electronically. Tax-related identity theft can cause significant financial and personal stress, delay tax refunds, and require time and effort to resolve. With more people filing online, the IRS emphasizes the need for enhanced security to ensure taxpayer data remain safe.

Steps to Improve Tax-Paying Security

In addition to the IRS’s IP PIN program, you can also take additional precautions. Here are some recommendations:

  • Use Trusted Software or Hire a Reputable Tax Preparer: When filing taxes, use reputable tax software with strong security features or a licensed tax professional who follows IRS security guidelines.
  • Avoid Phishing Scams: Be suspicious of emails or calls from anyone claiming to be from the IRS. The IRS never initiates contact via email or phone. Always use official IRS channels to verify any communications.
  • Enable Two-Factor Authentication: Many tax software providers offer two-factor authentication to add an extra layer of security to online accounts.
  • Regularly Monitor Financial Accounts: Regularly monitoring your bank accounts, credit cards, and credit report can help you catch unauthorized activity.
  • Safeguard Personal Documents: Keep paper records of tax documents secure and shred any sensitive documents you no longer need.

Staying Secure When Filing Taxes

By providing taxpayers with an extra layer of security, the IRS’s IP PIN program helps prevent unauthorized access to sensitive information. Working with a trusted tax professional can help reduce the risk of fraud and identity theft. With an experienced estate planning attorney, you can pursue strategies to reduce the amount of taxable assets you have and help you plan for your future.

For additional reading on keeping your personal and financial information secure, check out the following articles:


Created date: 11/13/2024
Medicaid 101
What Medicaid Covers

In addition to nursing home care, Medicaid may cover home care and some care in an assisted living facility. Coverage in your state may depend on waivers of federal rules.

READ MORE
How to Qualify for Medicaid

To be eligible for Medicaid long-term care, recipients must have limited incomes and no more than $2,000 (in most states). Special rules apply for the home and other assets.

READ MORE
Medicaid’s Protections for Spouses

Spouses of Medicaid nursing home residents have special protections to keep them from becoming impoverished.

READ MORE
What Medicaid Covers

In addition to nursing home care, Medicaid may cover home care and some care in an assisted living facility. Coverage in your state may depend on waivers of federal rules.

READ MORE
How to Qualify for Medicaid

To be eligible for Medicaid long-term care, recipients must have limited incomes and no more than $2,000 (in most states). Special rules apply for the home and other assets.

READ MORE
Medicaid’s Protections for Spouses

Spouses of Medicaid nursing home residents have special protections to keep them from becoming impoverished.

READ MORE
Medicaid Planning Strategies

Careful planning for potentially devastating long-term care costs can help protect your estate, whether for your spouse or for your children.

READ MORE
Estate Recovery: Can Medicaid Take My House After I’m Gone?

If steps aren't taken to protect the Medicaid recipient's house from the state’s attempts to recover benefits paid, the house may need to be sold.

READ MORE
Help Qualifying and Paying for Medicaid, Or Avoiding Nursing Home Care

There are ways to handle excess income or assets and still qualify for Medicaid long-term care, and programs that deliver care at home rather than in a nursing home.

READ MORE
Are Adult Children Responsible for Their Parents’ Care?

Most states have laws on the books making adult children responsible if their parents can't afford to take care of themselves.

READ MORE
Applying for Medicaid

Applying for Medicaid is a highly technical and complex process, and bad advice can actually make it more difficult to qualify for benefits.

READ MORE
Alternatives to Medicaid

Medicare's coverage of nursing home care is quite limited. For those who can afford it and who can qualify for coverage, long-term care insurance is the best alternative to Medicaid.

READ MORE
ElderLaw 101
Estate Planning

Distinguish the key concepts in estate planning, including the will, the trust, probate, the power of attorney, and how to avoid estate taxes.

READ MORE
Grandchildren

Learn about grandparents’ visitation rights and how to avoid tax and public benefit issues when making gifts to grandchildren.

READ MORE
Guardianship/Conservatorship

Understand when and how a court appoints a guardian or conservator for an adult who becomes incapacitated, and how to avoid guardianship.

READ MORE
Health Care Decisions

We need to plan for the possibility that we will become unable to make our own medical decisions. This may take the form of a health care proxy, a medical directive, a living will, or a combination of these.

READ MORE
Estate Planning

Distinguish the key concepts in estate planning, including the will, the trust, probate, the power of attorney, and how to avoid estate taxes.

READ MORE
Grandchildren

Learn about grandparents’ visitation rights and how to avoid tax and public benefit issues when making gifts to grandchildren.

READ MORE
Guardianship/Conservatorship

Understand when and how a court appoints a guardian or conservator for an adult who becomes incapacitated, and how to avoid guardianship.

READ MORE
Health Care Decisions

We need to plan for the possibility that we will become unable to make our own medical decisions. This may take the form of a health care proxy, a medical directive, a living will, or a combination of these.

READ MORE
Long-Term Care Insurance

Understand the ins and outs of insurance to cover the high cost of nursing home care, including when to buy it, how much to buy, and which spouse should get the coverage.

READ MORE
Medicare

Learn who qualifies for Medicare, what the program covers, all about Medicare Advantage, and how to supplement Medicare’s coverage.

READ MORE
Retirement Planning

We explain the five phases of retirement planning, the difference between a 401(k) and an IRA, types of investments, asset diversification, the required minimum distribution rules, and more.

READ MORE
Senior Living

Find out how to choose a nursing home or assisted living facility, when to fight a discharge, the rights of nursing home residents, all about reverse mortgages, and more.

READ MORE
Social Security

Get a solid grounding in Social Security, including who is eligible, how to apply, spousal benefits, the taxation of benefits, how work affects payments, and SSDI and SSI.

READ MORE
Special Needs Planning

Learn how a special needs trust can preserve assets for a person with disabilities without jeopardizing Medicaid and SSI, and how to plan for when caregivers are gone.

READ MORE
Veterans Benefits

Explore benefits for older veterans, including the VA’s disability pension benefit, aid and attendance, and long-term care coverage for veterans and surviving spouses.

READ MORE