![]() ![]() If a return is filed after October 14, it will have to be filed on paper and the IP PIN cannot be used. Retrieval of an IP PIN can take up to 21 days as the IRS will have to send it by mail. A tax advisor can also assist taxpayers with retrieval of their IP PIN if it is lost or if they do not receive their annual CP01A letter in January. They can help walk taxpayers through the process of applying for an IP PIN and notifying the IRS if there has been identity theft. That is where having a tax advisor or tax preparer can make life less stressful. They will have to file their tax return on paper, by mail, as the IRS will reject any electronic version submitted without the proper IP PIN. Without a new IP PIN, taxpayers will have issues filing their federal tax return. The IRS will automatically send taxpayers a new IP PIN by mail each January, which makes it vital for taxpayers who have moved to use Form 8822 to inform the IRS of an address change. Some people may find that annual change cumbersome. The IP PIN changes each year, unlike the four-digit PIN that people use without the need for change when filing online taxes each year. Once you sign up for an IP PIN, you will be in the program for life. If your identity is stolen, the IRS flags your account for the next three years, resulting in slower processing of your tax return and a delayed refund if one is due. The IP PIN is an important tool as it will thwart tax-related identity theft, preventing many of the problems that come with identity theft. The IP PIN offers a greater level of security when it comes to protecting people from tax-related crimes. Data breaches have become prevalent and most of us have our personal information stored somewhere online, which means we risk having that information leaked or stolen. There are a number of reasons for signing up for an IP PIN, but also some drawbacks. An IP PIN is used only on Forms 1040, 1040PR and 1040SS. The IP PIN is a six-digit number assigned to eligible taxpayers to help prevent the misuse of their Social Security number on fraudulent federal income tax returns. ![]() Although the program was initially for victims of identity theft, it is being expanded in phases to all taxpayers. The Internal Revenue Service (IRS) created an Identity Protection Personal Identification Number (IP PIN) Opt-In Program to protect taxpayers whose identities had been stolen. Even children’s Social Security numbers are being targeted. Identity theft has become a serious problem and fraudsters have used stolen identities to file false tax returns and claim refunds before the rightful filers can do so. ![]()
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