As the January 19 start date for the 2016 filing season draws near, you should know the actions IRS is considering to protect you from identity theft and refund fraud. The IRS IP PIN is a 6-digit number assigned to eligible taxpayers to help prevent the misuse of their Social Security number on fraudulent federal income tax returns. The IP PIN helps us verify a taxpayer’s identity and accept their electronic or paper tax return.

Below are the quick updates:

• You’re eligible for an IP PIN if:
  • You’re a victim of identity theft and IRS resolved your case. As a result, IRS sent you a CP01A Notice containing your IP PIN, or
  • You filed your federal tax return last year as a resident of Florida, Georgia or the District of Columbia, you are invited to participate in the IP PIN program by going to Get an IP PIN. The program is not limited to identity theft victims or
  • You received an IRS letter inviting you to ‘opt-in’ to get an IP PIN.
• If a return is e-filed with your SSN and an incorrect or missing IP PIN, IRS system will reject it until you submit it with the correct IP PIN or you file on paper. If the same conditions occur on a paper filed return, it will delay its processing and any refund you may be due for your protection while IRS determine if it’s yours.
• You can’t use your IRS IP PIN on a state income tax return. If you state also issues identity protection PINs, use it only for the state income tax return.
• Beginning with the 2016 filing season, the IRS requires that an identity protection PIN (IP PIN) be entered on the 2015 tax return if an individual that is claimed as a dependent on a tax return has received an IP PIN from the IRS. Otherwise, the IRS will reject the tax return.
• If an individual loses their IP PIN, the original can be retrieved via the online IRS Get an Identity Protection PIN tool on the IRS website. However, please know that the use of a replacement IP PIN will subject your tax return to greater review and may mean a delay in processing any refund you may be due.
• Individuals who had an IP PIN in 2015 (for Tax Year 2014) should have received a new 6 digit IP PIN from the IRS this month (January) via IRS notice CP01A.
• The taxpayer’s IP PIN will print on Form 1040 in the area designated in the signature area. The Spouse’s and Dependent’s IP PIN will not print on the Form 1040 because the IRS has not included a place for them on the printed Form 1040.
• The IRS may also invite an individual to get an IP PIN by sending them a letter because their account met specific criteria that made them eligible to receive an IP PIN.
• Due to an error, the IRS is emphasizing that all IP PINs that are contained in the CP01A notices that an individual receives this month (January) are for filing the 2015 tax return even though the notices incorrectly state they are for filing the 2014 tax return.