Protect Your Taxes: What You Need to Know About IRS IP PINs

Tax season is already complicated enough, but identity theft can make it significantly worse. To help safeguard taxpayers, the IRS offers the Identity Protection Personal Identification Number (IP PIN). Here’s a breakdown of what an IP PIN is, how to get one, and insights on who should consider using it.

Tax season is already complicated enough, but identity theft can make it significantly worse. Identity theft is a growing concern, with the Federal Trade Commission (FTC) receiving 1.4 million reports of identity theft in 2024 alone1. This represents a significant portion of the 5.7 million total fraud and identity theft reports1. The median loss for fraud victims is about $500, and total losses from cybercrime are estimated to be $10.2 billion1. Additionally, identity theft occurs every 22 seconds in the United States1.

To help safeguard taxpayers, the IRS offers the Identity Protection Personal Identification Number (IP PIN). Here’s a breakdown of what an IP PIN is, how to get one, and insights on who should consider using it.

An IP PIN is a six-digit number issued by the IRS to prevent tax-related identity theft. It serves as a unique identifier that ensures only the rightful taxpayer can file a return under their Social Security Number (SSN). Once issued, the IP PIN must be included when filing a tax return, adding an extra layer of security.

Eligible taxpayers can apply for an IP PIN through the IRS’s Get an IP PIN online tool. The process includes verifying your identity by providing your SSN, filing status, and other personal details. If eligible, your IP PIN will be issued immediately. For those who can’t apply online, a paper application process also is available using Form 15227.

New IP PINs are issued each year, which can cause complications if the number is misplaced. Some taxpayers may find it challenging to locate their updated IP PIN when it’s time to file, making the process more cumbersome. Another practical consideration is “address changes”. If you move during the year and don’t update your address with the IRS, the new IP PIN may go to your old address, causing delays.

If you lose your IP PIN, you can retrieve it online through your IRS account or have it reissued by phone. It's also important to note that if you have been assigned an IP PIN, you must use it when filing any federal tax returns during the year, including prior year returns. Additionally, the IRS will never ask for your IP PIN via phone calls, emails, or texts. Any such requests are scams.

You should strongly consider getting an IP PIN if you’ve experienced identity theft, tax fraud, or if you’re worried about becoming a victim of identity theft. Your IP PIN can provide peace of mind. However, if you haven’t faced any identity theft concerns, obtaining an IP PIN might not be necessary and could introduce additional challenges, such as misplacing the PIN or dealing with address issues.

An IP PIN is an excellent tool for protecting yourself from tax-related identity theft. However, it’s not without its complexities, including keeping track of an annually updated number and ensuring your address is current with the IRS. For many, the added layer of security is worth the effort, particularly if you’ve had identity theft issues in the past. For others, it might be an unnecessary hassle unless specific concerns arise. If you’re still unsure whether an IP PIN is right for you, consult your tax professional for tailored guidance. As always, stay organized and vigilant to protect your personal and financial information. After all, being Truly Cared For™ means having a team that understands your passions and uses proven methods to help you reach your goals—starting with protecting what matters most.

1 2024 Identity Theft Facts and Statistics

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