Tax fraud is one of the growing issues by which someone provides false information about tax returns to reduce the amount of tax owed or to increase the tax refund amount.
It can occur in several forms, including false deduction claims, failure to report income or using a person’s social security number (SSN).
Here comes Identity Protection Pin as a savior. In 2011, the IRS introduced taxpayer IP PIN to combat potential tax-related identity theft. Not only will it help to save you from the consequences of tax fraud, but it will also help to ensure that things are complying with tax laws. ‘
There are other significant benefits of IP PIN, which you will know in the following section of this blog. Before directly jumping into that, let’s have a brief introduction to IP PIN.
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What is the Identity Protection PIN?
An IP PIN or identity protection personal identification number is a six-digit number. It is assigned to eligible taxpayers by the Internal Revenue Service. The IP PIN is a confidential number miming the taxpayer’s SSN on tax forms. This IP PIN helps the IRS verify a taxpayer’s identity while accepting the tax return based on the same. Generally, IP PIN protects taxpayers who are already victims of identity theft.
Benefits of Using an IP PIN
Being a powerful tool, IP PIN can safeguard your personal information while providing an extra layer of security against identity theft. Here are some of the benefits of IP PIN-
1. Protection Shield Against Identity Theft
Scammers use stolen SSNs to file dubious tax returns and claim refunds. IP PIN refrains the same from doing it again and again. Hence, fraudsters can’t file an SSN once they start using their IP PIN.
2. Enhanced Security Level
When you file a tax return with an IP PIN, it will ensure that only the legitimate taxpayer can file the refund using SSN.
3. Quicker Processing
Filing your tax return with an IP PIN ensures faster processing, as the IRS can verify your identity easily. This process reduces the chances of delay due to identity scam issues.
4. Easy to Use
You can use the IP PIN more quickly and efficiently by including it in your tax return file once you receive the IP PIN from the IRS each year.
5. No Duplicity Anymore
The IP PIN prevents the fraudsters from filing a dubious return using your SSN. It can lead to severe consequences if it remains unchecked.
How to Obtain an IP PIN
First, you should visit the official IRS website and follow the steps to verify your eligibility and identity.
First and foremost, you must create an account on the IRS website. Once done, you can use the tool “Get an IP PIN” to submit your request.
In order to verify your identity, this tool will navigate you through a series of questions, including your name, SSN, mailing address and date of birth. Bear in mind that the IRS uses the previous year’s tax return information to verify your identity. So, you must have accurate information that aligns with the previous IRS records.
Once you submit the request, the IRS will send you a mail about CP01A notice with your IP PIN. You should use this pin when filing your federal tax return. This pin will save you from any fraudulent tax return using your SSN.
How to Use an IP PIN
Once you receive the IP PIN through mail, keep it safe and secure. Don’t share it with anyone. During filing your federal tax return, you’ll be asked to enter the IP PIN. If you’re filling out a paper turn, you must write the IP PIN.
If you lose the IP PIN, or you don’t receive it over the mail, you can still retrieve it from the IRS website with the help of an online tool called “Get an IP PIN.” It enables you to retrieve your IP PIN within minutes. However, you need to verify your identity by answering a few questions. Once you verify your identity, you can view and print your IP PIN.
Bear in mind that the IRS never emails your PIN. So, be cautious of any email claiming to provide your IP PIN.
Wrapping it Up
IP PIN can save your back by preventing fraud, followed by eliminating the most pressing issue of tax fraud. Already, it’s successful in reducing fraud to provide an extra layer of protection, resulting in taxpayers’ enhanced peace of mind.