Historically only provided to victims of identity theft! Now an Identity Protection Personal Identification Number (IP PIN) is soon to become the standard in verifying a taxpayer’s identity and will be required for tax filing in the future.
What Is An IP PIN?
An Identity Protection Personal Identification Number (IP PIN) is a six-digit number that is designed to prevent the misuse of Social Security numbers to submit fraudulent federal income tax returns. IP PINS allow the Internal Revenue Service (IRS) to better verify a taxpayer’s identity and accept their electronic or paper tax return with a reduction in risk of fraud.
When And How Do I Obtain An IP Pin?
The IRS has begun a limited pilot program in which taxpayers who voluntarily “opt in” — not just those that have been affected by identity theft or fraud — may acquire an IP PIN from a tool on their website, www.irs.gov.
Beginning in January 2021, the IRS will expand its IP PIN program to all individual taxpayers and allow all individuals to receive an IP PIN via the tool on the IRS website in which all individual taxpayers will have the opportunity to “opt-in” to receive an IP PIN voluntarily. The expanded initiative is intended to reduce fraudulent federal income tax return filings. It is important to note that IP Pins are only valid for one year. A taxpayer must obtain a newly generated IP PIN in January of each year.
As with any PIN or personal information, an IP PIN should never be shared with anyone except the tax preparer.
Let us guide you through the IP PIN requirements. Contact the professionals at CPA Accounting & Tax Services to help guide you through tax season and beyond. We specialize in Business Accounting Services, Individual Tax Services, International Tax Services, Tax Planning and Tax Resolution Services. We have offices in Orlando, Florida and service clients worldwide. Find out how we can serve all of your accounting needs by contacting us today: www.cpaaccounting.biz