As the tax season approaches, it's important to be aware of the potential for tax-related identity theft and scams. Unfortunately, these types of crimes are all too common, with scammers using various methods to steal personal information and commit fraud.  

But there's no need to panic, as there are several ways to protect yourself and your finances. One of the key ways is to obtain an IP PIN (Identity Protection Personal Identification Number) issued by the Internal Revenue Service (IRS), which acts as an extra layer of security for your tax information and must be included on your tax return in order to process it.  

What is an IP PIN? 

An IP PIN, or Identity Protection Personal Identification Number, is a six-digit number assigned by the Internal Revenue Service (IRS) to help prevent the misuse of your social security number (SSN) on fraudulent federal income tax returns. It acts as an extra security layer for your tax information and must be included on your tax return to process it. 

How do I get an IP PIN? 

If you are a victim of tax-related identity theft — or if the IRS has determined that you are at a high risk of becoming a victim — you may be eligible to receive an IP PIN. To request an IP PIN, you will need to provide the IRS with certain personal information, including your SSN, date of birth, and mailing address. 

You can request an IP PIN by mail or online. If you choose to request an IP PIN by mail, you will need to complete Form 14039, Identity Theft Affidavit, and send it to the address provided on the form. If you choose to request an IP PIN online, you will need to use the IRS's online tool, Get an IP PIN. 

How do I get an IP PIN online? 

To request an IP PIN online, you will need to have a copy of your prior-year tax return and access to the email address associated with your account. Once you have these, you can go to the IRS's online tool, get an IP PIN, and follow the prompts to verify your identity and request your IP PIN. 

You will be prompted to enter your SSN, date of birth, and mailing address, and answer security questions based on the information on file with the IRS. Once your identity has been verified, you will be able to access your IP PIN and include it on your current year's tax return. 

What to do if you’re a victim of tax-related identity theft 

If you suspect you are a victim of tax-related identity theft, it's important to take immediate action to protect yourself. Here are a few steps you can take: 

1. Report the problem: Contact the IRS and report the identity theft by completing Form 14039, Identity Theft Affidavit. You can also file a complaint with the Federal Trade Commission (FTC) and your state's attorney general's office. 
   
   
2. Get extra help resolving the issue: If you believe your personal information has been compromised, consider getting extra help to resolve the issue. This might include hiring a credit monitoring service or working with a credit repair company. 
   
   
3. Organize your records: Keep a record of all the documents related to the identity theft and make copies of any correspondence you receive. 
   
   
4. Lock down your credit: Consider freezing your credit, which will make it more difficult for scammers to open new accounts in your name. 
   
   
5. Keep an eye on your accounts: Regularly check your bank and credit card statements for any suspicious activity and report any unauthorized charges immediately. 

Other signs you have been a victim of tax-related identity theft 

Aside from receiving a notice from the IRS, there are several other signs that you may have been a victim of tax-related identity theft. The most common one is finding unfamiliar accounts or charges on your credit report, but you might also get a notice from the IRS stating that:  

• More than one tax return has been filed in your name 
• You have a balance due on a return you did not file 
• You have been employed by an employer you never worked for 
• You have received wages from an employer you have never worked for 
• You have been denied a refund because of a duplicate filing 
• You have outstanding taxes on a return you did not file 
• You have a refund or credit from a return you did not file 

If you suspect you may be a victim of tax-related identity theft, it's important to act quickly and report it to the IRS as soon as possible. Remember to be vigilant and keep an eye on your personal information and financial accounts, and to request an IP PIN if you are at a high risk of becoming a victim of this type of scam. By taking these steps, you can help protect yourself and your finances from tax-related identity theft.