IP PIN: Are You Protected Against Identity Theft?
Do you know what it is, how it works, and why you should have one?
When it comes to your taxes, your Social Security number is your main key with the IRS but that key can also be a target for people who try to use it to file fraudulent tax returns and steal refunds or create legal issues in your name. For this reason, the IRS offers a security tool called the Identity Protection PIN (IP PIN), which more and more taxpayers should be aware of and consider using.
An IP PIN is a six-digit number that only you and the IRS know. The idea is simple: if someone tries to file a tax return using your Social Security number or ITIN without your authorization, the IRS will not accept the return unless the correct IP PIN is included. This additional layer of security helps block scams before they happen.
This PIN does not appear on any standard form, nor is it automatically provided by your tax preparer. The IRS assigns it specifically to protect your tax identity.
If you have been a victim of tax-related identity theft, the IRS may have already assigned one to you. In other cases, you can voluntarily enroll and receive a new IP PIN each year.
Who can obtain an IP PIN?
The good news is that anyone with a Social Security number or ITIN can request an IP PIN, as long as they can properly verify their identity. This includes foreign taxpayers with an ITIN, as well as parents who want to protect the tax identity of their dependents.
It is important to know that the IRS may require you to change or request an IP PIN when it detects suspicious activities, irregularities, address changes that trigger alerts, or even potential fraudulent tax returns.
The process requires validating your identity directly with the IRS, usually through its online system and verification tools such as ID.me. For many people, this step can be confusing or raise questions, especially if they are not familiar with IRS digital processes; having the support of a Spanish-speaking CPA from Jambrina CPA can help you understand each step of the process.
How does it work in practice?
Once you obtain your IP PIN, you must enter it every time you file your tax return, whether online or on paper, on forms such as the 1040 or 1040-NR. If you file your return without the correct IP PIN, the IRS may reject it or delay its processing while your identity is verified.
The IP PIN changes every year, so it is important to keep it secure and use the one that corresponds to the tax year you are filing. Many taxpayers receive an official IRS notice (CP01A) with their new PIN before tax season begins, although it can also be retrieved directly from your IRS account.
Why is it so important to protect your tax identity?
Tax identity theft is one of the most common forms of tax fraud. Scammers seek to file false tax returns to claim refunds before the legitimate taxpayer does. The IP PIN blocks these attempts, since without that number the return simply cannot move forward in the IRS system.
Although the IP PIN does not prevent someone from trying to steal your information, it does prevent them from using it successfully, reducing risks, delays, and legal issues. It is a preventive measure especially recommended if you are a foreign taxpayer with an ITIN, have income in the U.S., manage a business, or simply want greater peace of mind.
How Jambrina CPA helps protect you against fraud and identity theft
At Jambrina CPA, we help you protect your tax identity and financial information. We know that IRS processes can be confusing, especially when it comes to security, identity verification, or foreign taxpayers.
Our team of bilingual CPAs in Houston can help you:
Guide you step by step to correctly request your IP PIN, without errors or lockouts.
Review your tax situation if you have been a victim of identity theft or tax fraud.
Prepare and file your tax return using the IP PIN correctly and securely.
Advise you if you are a foreign taxpayer with an ITIN and need to comply with the IRS without risk.
Protect your business’s tax information with clear accounting and business tax processes.
We work with individuals, families, and businesses seeking reliable, secure, and error-proof accounting and tax services, with personalized attention in English and Spanish.
If you want to prevent problems before they happen, an IP PIN and the right guidance make all the difference.