On 10/23/24, the IRS released Notice IR-2024-278 to encourage all taxpayers to sign up for an IRS IP PIN (identity protection personal identification number) to safeguard their identity and help protect against tax-related identity theft. The IRS states that the IP PIN, which is exclusively known to the individual and the IRS, serves to verify a taxpayer’s identity during the electronic submission of their tax return, thereby significantly reducing the likelihood of identity theft and fraudulent use of their personal information. Note that if a taxpayer has been officially identified as a victim of tax-related identity theft and the IRS has successfully addressed the issues concerning a taxpayer’s account, the IRS will send a Taxpayer a CP01A Notice annually, which will include a new IRS IP PIN. The IRS releases the Notice to alert the taxpayers that do not currently possess an IP PIN and let them know that they have the option to obtain one as a preventive measure against tax-related identity theft. The opportunity is available to anyone with a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN), including those residing outside the United States. That said, taxpayers that would consider the option of signing up for an IRS IP PIN ought to have a discussion with their tax expert to determine if the request is worthwhile given that:
- An IP PIN is valid for one calendar year and a new IP PIN is generated each year for the taxpayer.
- There could potentially be lengthy delays in receiving a new IP PIN each year.
- The IP PIN could be lost in the mail (if IRS chooses that delivery method).
- Replacing the IP PIN if lost could be cumbersome.
- Opening an account or signing in to ID.me can be challenging.
- The IP PIN system could be undergoing maintenance.
- Some taxpayers have privacy concerns as it relates to providing photo of a government ID and selfie, or a live call with an ID.me video chat agent.
How to request an IRS IP IPIN
- To request an IP PIN, the most effective method is through the IRS Online Account. This procedure necessitates identity verification, and both spouses and dependents are eligible to obtain an IP PIN by completing the necessary verification steps. Once an IP PIN is assigned, it must be included on both electronic and paper tax returns.
- Taxpayers can obtain an IP PIN by creating or logging into their online account at IRS.gov and following the identity verification process. After successful verification, they should navigate to the profile tab to request their IP PIN. It is essential for IP PIN holders to utilize this number when submitting their federal tax returns for the current year as well as for any prior years filed during that timeframe.
- For individuals who are unable to establish an Online Account, there are alternative options available, including in-person verification at a Taxpayer Assistance Center. Additional details on the registration process can be found at Get an identity protection PIN (IP PIN).
Note that:
- An IP PIN remains valid for a duration of one calendar year.
- To enhance security, new IP PINs are issued at the start of each calendar year.
- Some individuals will receive their IP PIN via postal mail, while others will need to access their Online Account to retrieve their current IP PIN.
- Taxpayers who are enrolled can log into their Online Account to check their current IP PIN.
- It is essential for taxpayers possessing an IP PIN to utilize it when submitting any federal tax returns throughout the year, which includes returns from previous years or amended returns.
- Users of the IP PIN should only disclose their number to the IRS and their tax expert.
Is obtaining an IRS IP PIN for the 2025 Tax Season worthwhile?
Given the possible inconveniences related to the IP PIN, it is best to consult with your tax expert unless you are a victim of tax related identity theft. If the IRS records show that a taxpayer is a victim of identity theft, the taxpayer will automatically be enrolled into the IP PIN program.
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