In today’s digital age, protecting your personal information is more critical than ever before. That is why the IRS came up with an Identity Protection Personal Identification Number (IP PIN) to help protect taxpayers from identity theft. But what is an IP PIN, and how does it work? In this blog post, we will explore everything you need to know.
What is an IP PIN?
An IP PIN is a six-digit number assigned to eligible taxpayers to help prevent the misuse of their Social Security Number (SSN) on fraudulent federal income tax returns. An IP PIN is valid for one calendar year.
Once assigned, you must use your IP PIN to confirm your identity when you file your tax returns.
If you haven’t received your IP PIN or lost it, you can retrieve it using the IRS’s Get an IP PIN tool on their website.
Who is eligible for an IP PIN?
The IRS automatically enrolls some taxpayers who were victims of identity theft and resolved the issue with the IRS in the prior tax year.
However, starting in the 2021 filing season, the IP PIN program will expand to all eligible taxpayers who opt-in.
To be eligible for an IP PIN, you must have a valid SSN, be able to verify your identity, and have an adjusted gross income of $73,000 or less (or $146,000 for married couples filing jointly.)
How does an IP PIN work?
When you get an IP PIN, you must use it to file your tax returns. You will enter the six-digit number in the appropriate box, and the IRS will verify the number before accepting your return. If someone else files a tax return using your SSN, they will not know your IP PIN, and the IRS will reject their filing. If the IRS rejects your tax return due to an incorrect IP PIN, you can try to correct the error, but it may lead to delays and additional scrutiny.
What are the benefits of an IP PIN?
The primary benefit of an IP PIN is that it provides an extra layer of security to prevent identity thieves from using your SSN to file fraudulent tax returns and claim your refund. Additionally, the IRS plans to expand the e-file PIN program to more taxpayers who wish to opt-in to the program, making it available to more people.
Wrapping It Up
In conclusion, an IP PIN is a critical tool in protecting your identity and financial well-being. It helps prevent fraudsters from using your SSN to file a fraudulent tax return and claim your refund. The IRS automatically enrolls some victims of identity theft in the IP PIN program and plans to expand the opt-in program to all eligible taxpayers. If you’re eligible, we highly recommend opting into the IP PIN program to help keep your identity safe and secure.
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When it comes to taxes, knowledge is power. That’s why at At JT Tax Services, we give you the peace of mind that comes with knowing that you are working with experienced professionals with in-depth knowledge of all applicable tax laws and regulations.
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