The IRS is expanding the number of taxpayers who will receive an Identity Protection Pin (IP PIN) for the upcoming season. All taxpayers that have had an identity theft indicator applied to their IRS tax account will receive an IP PIN that must be included on their 2012 Federal income tax return. This means that approximately 600,000 taxpayers will receive an IP PIN for the upcoming filing season.
The IP PIN will be given to taxpayers who have:
- Reported to the IRS that they have been victims of identity theft
- Given the IRS information that verified their identity
- Had an identity theft indicator applied to their account
The taxpayer will receive a CP01A from the IRS in December which will include their 6-digit PIN and instructions on its use. The IP PIN is a single-use identification number which is to be used only for their upcoming federal income tax return. It will not be used on the taxpayer’s state return. The taxpayer will get a new IP PIN every year.
If the taxpayer was issued an IP PIN they must include it and have it entered correctly on their 2012
Federal return or the IRS will reject their return. The inclusion of the IP PIN will allow the return to be processed normally and should not delay their refund.
What if the taxpayer loses their IP PIN?
If the taxpayer loses the notice that includes their IP PIN they can call the IRS Help Desk (1-800-908-4490, ext. 245). Once they have authenticated who they are, they will be issued with a replacement IP PIN. However there may be a delay in processing the return while the IRS validates the taxpayer’s information.
What if the taxpayer is filing jointly with their spouse?
Only the primary taxpayer (the person whose SSN appears first on the return) will need to enter their IP PIN. If the taxpayer is a spouse on a joint return, they will not be required to enter an IP PIN on the return even if they received one.
What if the taxpayer is mailing in a paper return instead of filing an electronic return?
If the taxpayer files a paper return, they should enter their IP PIN in the gray box just to the right of the spouse’s signature/occupation.