Unfortunately today Identity theft is a
common occurrence.
In order to combat identity theft of
a person’ s tax refunds, the IRS began issuing IP PINs to eligible taxpayers in
Fiscal Year 2011. An IP PIN is a 6-digit number assigned to eligible taxpayers
that allows their tax returns/refunds to be processed without delay and helps prevent
the misuse of their SSNs on fraudulent Federal income tax returns. For
Processing Year 2014, IRS issued over 1.2 million IP PIN notices to taxpayers
for use in filing their tax returns.
To get an IP PIN the personal information the
taxpayer entered must match the information provided us on the most recent tax
return. The IRS uses the following information to verify your identity:
·
Name
·
Social Security Number
or Individual Tax ID Number (ITIN)
·
Date of Birth
·
Filing Status
·
Mailing Address
·
Third Party Verification
Questions - you must provide answers to questions about personal information
such as prior address, mortgage information, etc., that only you should know.
You must also provide the IRS with a valid email
address, which we will be confirmed and use to notify the taxpayer if his
registration information changes.
Once a taxpayer gets an IP PIN, he
must use the IP PIN to confirm his identity on his current federal tax return
and any delinquent returns filed during the calendar year. IRS sends a new IP
PIN each December by postal mail.
On its website, IRS has discussed various
IP PIN issues, including:
Fpor example...Who can get an IP
PIN?
A taxpayer can receive an IP PIN if
he meets one of the following criteria:
- He received an IP
PIN last year;
- He received a CP01A (which provides an IP PIN) or CP01F
(which invites the taxpayer to obtain an IP PIN) notice; or
- He filed his last tax return as a resident of FL, GA,
or DC. (FAQ 3)
What
happens when a taxpayer receives an IP PIN but doesn't use it on his return?
The answer depends on whether the
taxpayer files electronically or on a paper return.
For an electronic return: if IRS
sent an IP PIN through Get an IP PIN, but the taxpayer did not use it or he
entered it incorrectly, his return will be rejected and he won't be able to
e-File his return.
For a paper return: failure to input
the IP PIN for the primary taxpayer (when required) on a paper return will mean
his return will take longer to process while IRS validates the information.
Must a taxpayer include his
dependent's IP PIN on his tax return?
Not at the current time. He will not
need to enter an IP PIN for a dependent in order to file his return. However,
if the dependent's SSN has been used to file another tax return, the dependent
should report the incident to IRS, an identity theft indicator will be placed
on the dependent's account, and the dependent may receive an IP PIN prior to
the tax season. While this IP PIN doesn't have to be entered to claim the
person as a dependent, the IP PIN will prevent anyone else from filing a tax
return using the dependent's information as the primary or secondary taxpayer.
Starting Jan. 1, 2016, there will be
new rules for the dependent IP PIN. IRS will require the use of IP PINs for all
SSNs with an IP PIN requirement, regardless of whether the SSN is entered for a
primary, spouse, or dependent/qualifying individual. This requirement applies
to the Form 1040 series of returns, Form 2441 (Child and Dependent Care
Expenses) and Schedule EIC (Earned Income Credit). Failure to include the IP
PIN in any of the required fields will result in the return being rejected. (IP
PIN Program Update: Numbers Must be Entered for All IP PIN Holders)
