New scams are constantly appearing. One of the most damaging and difficult to resolve is tax identity theft (learn about the most common tax scams). This specific type of scam occurs when an individual gets ahold of your Social Security number and files a false tax return in your name to receive your tax refund. When you try to file your return, it is rejected by the IRS because someone else has already filed one for that year using your Social Security number. It can take years to resolve this with the IRS and just as long to get your refund.
The Identity Protection PIN is a six-digit number included on your tax return and used in addition to your Social Security number to verify your identity. The ID PIN started as a small pilot program in 2021 in just a few states, available only to individuals who were previously victims of identity theft, but this program is now available to everyone. The PIN is used only for Forms 1040, 1040-NR, 1040-PR, 1040-SR, and 1040-SS. Each PIN is valid for only one filing season, and every January, the IRS will mail you a letter with a new PIN for that tax year. (However, once you opt into the program, you can’t opt out). If you happen to lose your PIN, there is an 800 number you can call to retrieve it.
You can apply for the ID PIN using the form 15227 if you make less than $79,000 as an individual or $158,000 for married filing jointly. You can also create a login account as part of ID.me, founded in 2010, which helps protect your identity across multiple affiliated websites, such as the Department of Labor, Social Security Administration, Department of Treasury, Department of Veteran Affairs, Department of Health and Human Services.
The ID PIN is not well known and underutilized, yet it can save you from the headache of tax identity theft. Apply for your ID PIN with the IRS today!
Resources:
The Most Common Tax Scams 2024
Magda Born
mborn@kckpl.org
Community Services Librarian
913-295-8250 ext 1103
