Don't Mess With Taxes

The Internal Revenue Service has made good progress in stopping fraudulent filings, but there’s always room for improvement.

And there are ways taxpayers can help not only the IRS, but also themselves when it comes to filing security.

Most U.S. taxpayers can obtain an identity protection personal identification number, or IP PIN.

An IP PIN is a special six-digit number issued by the IRS to requesting individuals who have a Social Security number (SSN) or an Individual Taxpayer Identification Number (ITIN).

Since only IP PIN recipients and the IRS know their number, the special code serves as a way to guard against identity thieves filing a bogus tax return. If a crook tries to file a tax return in someone's name, that fake filer will be stopped if they don't have the code that IP PIN participants have.

Getting an IP PIN: The IRS says the easiest way to get an IP PIN is to establish an IRS Online Account, Once that’s set up, getting an IP PIN is quick and easy, according to the IRS.

But you need to act quickly. Like today. On Nov. 23, the IP PIN system will be down for maintenance and will not be available again until early January 2025.

Signing up now will ensure you have the added IP PIN security when tax-filing season begins next year.

If you can’t or don’t want to create an IRS Online Account, there are alternative ways to get an IP PIN. One option is making an appointment at an IRS Taxpayer Assistance Center for in-person authentication.

You also can find more at IRS.gov’s Get an identity protection PIN (IP PIN) webpage.

Additional IP PIN information: The IP PIN program is totally voluntary. You don’t need the number to file. But it has proven to help stop tax identity theft.

An IP PIN is valid for one calendar year. For security reasons, new IP PINs are generated at the beginning of each calendar year. Some participants will receive their IP PIN in the mail, while others will have to log into their Online Account to view their current IP PIN.

Enrolled taxpayers can log back in to their Online Account to view their current IP PIN.

Taxpayers with an IP PIN must use it when filing any federal tax returns during the year, including prior year tax returns, or amended returns.

IP PIN users should share their number only with the IRS and their tax preparation provider.

Taxpayers who enrolled in the IP PIN program and have not been a victim of tax-related identity theft can opt out of the IP PIN program via their Online Account.

New IP PIN option regarding claimed dependents: The IRS also is making it easier for taxpayers to protect their information using an IP PIN and avoid refund delays by accepting certain e-filed tax returns that claim dependents who have already been claimed on another taxpayer’s return.

This change will benefit filers claiming important tax credits like the Earned Income Tax Credit (EITC) and Child Tax Credit.

The IRS says that beginning in the 2025 filing season, it will accept tax return Forms 1040, 1040-NR, and 1040-SS even if a dependent has already been claimed on a previously filed return as long as the primary taxpayer on the second return includes a valid IP PIN.

This change will reduce the time for the agency to receive the tax return and accelerate the issuance of tax refunds for those with duplicate dependent returns, according to the IRS. In previous years, the second tax return had to be filed by paper.

Under the new system, the taxpayer listed first on an e-filed tax return claiming dependents can provide their current year IP PIN when they file. If they do, the return will still be accepted.

The spouse (if married filing jointly) and the dependents on the tax return don’t need to provide an IP PIN if they don’t have one.

Taxpayers who do not have IP PINs will have their e-filed returns rejected if one of their dependents has already been claimed by another taxpayer. However, if the taxpayer obtains an IP PIN and e-files again with the IP PIN entered on the return, the IRS will accept the return assuming there are no other issues with it.

You also might find these items of interest:

• How to report tax scams and fraud
• Getting an IP PIN is a smart taxpayer security move
• Anyone now can get special IRS-issued PIN to thwart tax identity theft

Advertisements

🌟 Search Amazon Business and Money Books 🌟
The text link above is an affiliate ad. If you click through and then buy a product, I receive a commission.