IRS Issues IP PIN Letters

IRS Issues IP PIN Letters

The IRS takes tax-related identity theft seriously.  One of the programs that has been implemented by the IRS to help combat tax-related identity theft is the Identity Protection PIN (IP PIN) program.

Only select taxpayers are eligible to receive an IP PIN.  The following groups are eligible for an IRS IP PIN:

  1. Taxpayers to whom the IRS sent a “CP01A” Notice containing an IP PIN; or
  2. Taxpayers who filed their returns for 2016 as residents of either Florida, Georgia, or the District of Columbia; or
  3. Taxpayers who received an IRS letter inviting them to ‘opt-in’ to get an IP PIN.

Taxpayers participating in the IP PIN program are required to use their IP PIN in order to e-File their income tax returns.  For these taxpayers, tax returns that are electronically filed with the IRS will be rejected if the IP PIN is not included.  Also, tax returns filed on paper by these taxpayers will be subject to additional screenings by the IRS to verify the taxpayer’s identity if the IP PIN is not included.

The IRS has already mailed out IP PINs for tax year 2017.  If you have previously received an IRS IP PIN, if you have previously been notified by the IRS that you will need an IP PIN to file future returns, or if you elected to participate in the program for 2017, you should be receiving correspondence from the IRS soon containing your 2017 IP PIN, if you have not received it already.

If you receive an IRS IP PIN, we recommend storing your IP PIN in a secure location where it will not be lost, and we also recommend that you provide your IP PIN to your tax preparer at your earliest convenience.  Please note that, for married taxpayers, one or both spouses may receive an IP PIN.  If both spouses receive an IP PIN, your tax preparer will need both of the IP PINs in order to file your joint return.  If you are expecting an IP PIN and you do not receive one, please let your tax preparer know.  Your 2017 return will likely need to be filed on paper, and you may notice a delay in the processing of your return, as well as a delay in the issuance of any federal income tax refund you may be expecting.

Also, please remember that the IRS does not notify your tax preparer of your participation in the IP PIN program.  If the IRS has notified you that you are a participant in the program, please make sure that you notify your tax preparer so that your return will be prepared and filed according to IRS direction.

BRC would be happy to speak with you about this and any other tax-related matter.  Please contact us and let us know how we might be of assistance to you.