Be proactive against tax fraud
Why Getting an IRS Identity Protection PIN Is A Great Way to Prevent Tax Fraud
Tax-related identity theft has become one of the fastest-growing financial crimes in the United States. Fraudsters frequently attempt to file false tax returns using stolen Social Security numbers (SSN's) in order to claim refunds. With the rise technology and digitizing everything, comes a rise in cyber crimes, and SSN's are consistently compromised. One of the most effective ways to protect yourself from this type of fraud is by obtaining an Identity Protection Personal Identification Number (IP PIN) from the Internal Revenue Service.
An IRS IP PIN is a simple but powerful security tool that prevents criminals from filing a tax return in your name.
What Is an IRS Identity Protection PIN?
An Identity Protection PIN (IP PIN) is a six-digit number issued annually by the IRS that helps verify your identity when filing your federal tax return. When you have an IP PIN:
Your tax return cannot be electronically filed without it
Any return submitted without the correct PIN will be automatically rejected by the IRS
Paper returns without the PIN may face significant processing delays
This added layer of protection ensures that only you (or your tax professional) can file your return.
Why Tax Identity Theft Is a Growing Problem
Tax identity theft occurs when someone uses your personal information, usually your Social Security number, to file a fraudulent tax return and claim a refund. According to the Internal Revenue Service, criminals often obtain personal data through:
Data breaches
Phishing emails
Stolen mail
Dark web marketplaces
Social engineering scams
Once a fraudulent return is filed, the legitimate taxpayer may not discover the issue until their own return is rejected.
Resolving identity theft cases with the IRS can take months or even years, making prevention critical.
Benefits of Getting an IRS IP PIN
1. Strong Protection Against Tax Fraud
The biggest benefit of an IP PIN is fraud prevention.
Even if a criminal obtains your Social Security number, they cannot file your tax return without the six-digit PIN assigned to you by the IRS. This makes it significantly harder for scammers to steal tax refunds.
2. Faster Resolution if Identity Theft Has Occurred
Taxpayers who have already been victims of identity theft are often assigned an IP PIN automatically by the Internal Revenue Service.
This ensures that future tax returns are protected, preventing repeated fraud attempts.
3. Greater Control Over Your Tax Filing
An IP PIN ensures that:
Only authorized returns are accepted
Your tax professional can securely file on your behalf
Fraudulent filings are rejected immediately
For taxpayers working with a CPA or tax advisor, this extra layer of security adds peace of mind during tax season.
4. Available to All Taxpayers
Previously, IP PINs were only available to confirmed victims of identity theft. Today, the Internal Revenue Service allows any taxpayer who can verify their identity to voluntarily opt in to the program. This means proactive taxpayers can protect themselves before fraud ever occurs.
How to Get an IRS IP PIN
Obtaining an IP PIN is relatively simple through the IRS online portal. The process typically involves:
Creating or logging into an IRS online account
Verifying your identity
Requesting your IP PIN through the IRS “Get an IP PIN” tool
Once approved, your six-digit IP PIN will be issued immediately.
Each year, the IRS generates a new IP PIN for the upcoming filing season, and taxpayers must use the most current number when filing their return.
Who Should Consider Getting an IP PIN?
An IRS IP PIN is particularly valuable for individuals who:
Have previously experienced tax identity theft
Want to proactively prevent fraud
Own a business or have complex tax filings
Want additional protection for their Social Security number
Many tax professionals now recommend IP PIN enrollment as a best practice for identity protection.
Common Mistakes to Avoid
Losing Your IP PIN
Because a new IP PIN is issued every year, it’s important to keep the IRS notice or securely store the number.
Without the correct PIN, your tax return may be rejected.
Waiting Until Fraud Happens
Many taxpayers wait until after identity theft occurs before enrolling in the program. However, the best strategy is prevention.
Obtaining an IP PIN early can help ensure your tax return is always secure.
Final Thoughts
Identity theft continues to rise, and tax fraud remains a serious risk for many taxpayers. Fortunately, the IRS Identity Protection PIN program offers a simple and effective way to safeguard your tax filings. By enrolling in the program through the Internal Revenue Service, taxpayers can add an extra layer of protection and significantly reduce the chances of fraudulent tax returns being filed in their name. For individuals and business owners alike, an IP PIN is one of the easiest and most effective steps you can take to protect your financial identity.