Why Do I Need an IP PIN to File Taxes
Short answer
An IP PIN (Identity Protection Personal Identification Number) is a unique six-digit code the IRS provides to protect taxpayers from tax-related identity theft. You need an IP PIN to file taxes because it confirms you are the authorized filer of your Social Security number, preventing others from submitting fraudulent tax returns in your name.
What Is an IP PIN and How Does It Work?
An IP PIN is a six-digit number issued by the IRS to taxpayers at risk of identity theft or who request this extra layer of protection. It acts like a secret password used only when filing your tax return. When you submit your taxes, you include the IP PIN along with your Social Security number (SSN). The IRS verifies the IP PIN before processing your return. If the IP PIN is missing or incorrect, the IRS rejects the return to block fraudulent filings.
The IP PIN is unique to each taxpayer and typically changes every year. Its primary purpose is to stop scammers who might try to file a fake tax return using your SSN to claim your refund. By requiring the IP PIN, the IRS ensures that only someone with this code—presumably you—can file a return under your SSN.
For example, if your SSN is 123-45-6789 and the IRS assigns you an IP PIN of 482913, you must include both when filing. If a scammer tries to use your SSN without knowing 482913, the IRS will reject their fraudulent return.
Why Does Having an IP PIN Matter to You?
Tax-related identity theft can cause serious problems, including delayed refunds, IRS audits, and added stress. It happens when someone steals your SSN and files a false tax return early in the filing season to claim your refund.
Using an IP PIN protects you by serving as a second verification step. Even if thieves have your SSN, they cannot file a return without the correct IP PIN. This security measure helps prevent fraudulent returns and speeds up the processing of your legitimate tax return.
For instance, suppose a taxpayer named Maria was a victim of identity theft. After reporting it, she received an IP PIN. When she files taxes, anyone attempting to file fraudulently using her SSN but without her IP PIN will be stopped by the IRS. This saves Maria from dealing with delays and extra paperwork.
In addition to protecting your identity, having an IP PIN can save you time and money by avoiding the need to correct fraudulent returns or submit identity theft affidavits.
How Do You Get an IP PIN?
The IRS automatically issues IP PINs to taxpayers who report identity theft or whose information appears on suspicious returns. Anyone concerned about identity theft can also apply for an IP PIN voluntarily.
Steps to Apply for an IP PIN
- Go to the IRS website and find the “Get an IP PIN” tool.
- Provide personal information to verify your identity. This includes your SSN, filing status, address, and financial account details.
- Submit identification documents if requested, such as a driver’s license or passport.
- Once your identity is verified, the IRS provides your IP PIN immediately online or sends it by mail.
The IRS issues a new IP PIN annually for use during the next tax filing season. You must use the current year’s IP PIN when filing your tax return.
For example, if you apply before filing your taxes, you will receive an IP PIN to include on that year’s return. If you wait until after filing, you may need to contact the IRS to correct your return if you did not include the IP PIN.
What Should You Do If You Lose or Forget Your IP PIN?
You cannot file your tax return using an old or guessed IP PIN. Filing without the correct IP PIN will cause your return to be rejected or delayed.
If you lose or forget your IP PIN:
- Use the IRS’s online IP PIN retrieval tool by verifying your identity.
- Have your SSN, filing status, and tax filing address ready.
- Receive your current IP PIN immediately after verification.
If you cannot access the online tool, call the IRS Identity Protection Specialized Unit or submit Form 15227 for assistance.
To avoid losing your IP PIN, store it securely in a password manager, safe, or another protected place. Only share it with your trusted tax preparer.
What Are Common Confusions About IP PINs?
People often confuse the IP PIN with other IRS numbers or tax documents. Here are some clarifications:
- Tax Identification Number (TIN): This is your SSN or Employer Identification Number (EIN). The IP PIN is not your TIN; it is a separate security code.
- Form 1095-A: Reports health insurance coverage and has nothing to do with the IP PIN.
- IRS e-File PIN: A different electronic signature PIN unrelated to the IP PIN for identity protection.
- Employer Identification Number (EIN): Used by businesses, whereas the IP PIN is for individual taxpayers.
- Tax Return or Refund: The IP PIN is not a tax form or refund; it is a security code to accompany your return.
Understanding these distinctions helps you provide accurate information and avoid filing errors.
How Should You Use Your IP PIN When Filing Taxes?
When preparing your tax return, include the IP PIN exactly as provided by the IRS:
- If filing electronically, enter your IP PIN in the designated field of your tax software or provide it to your tax preparer.
- If filing on paper, write your IP PIN on the top right corner of the front page of your Form 1040 in the space labeled “Identity Protection PIN.”
- Double-check your IP PIN entry to avoid mistakes that could cause your return to be rejected.
For example, if your IP PIN is 735019, make sure no digits are transposed or omitted. Filing with an incorrect or missing IP PIN will delay your refund and require additional steps to resolve.
If you use a tax preparer, provide them with your current IP PIN well before filing to ensure the return is accepted by the IRS.
What Are the Next Steps If You Want to Start Using an IP PIN?
If you want extra protection or have experienced identity theft, follow these steps:
- Check if you already have an IP PIN by reviewing IRS correspondence or using the IRS online tool.
- Apply for an IP PIN through the IRS website by verifying your identity.
- Keep your IP PIN confidential and store it securely.
- Use your IP PIN every year when filing taxes.
- Inform your tax preparer about your IP PIN before filing.
- Keep your address up to date with the IRS to receive annual IP PIN notifications.
Using an IP PIN can safeguard your tax filings and reduce the risk of identity theft. For help gathering documents and preparing to file your taxes, see articles like What You Need for Your Tax Return and Why Do I Have to File Taxes Every Year.
Frequently asked questions
Who is eligible to get an IP PIN?
Anyone who has reported identity theft to the IRS or who wants extra protection can apply for an IP PIN using the IRS online tool after verifying their identity.
Can I file my tax return without an IP PIN if I have one?
No. If the IRS issues you an IP PIN, you must include it on your return. Filing without it will cause the IRS to reject your return.
How often do I get a new IP PIN?
The IRS issues a new IP PIN annually, and you must use the current year's IP PIN when filing your tax return.
What should I do if my IP PIN is compromised or lost?
Retrieve your IP PIN using the IRS online tool or contact the IRS Identity Protection Specialized Unit. Keep the IP PIN secure to prevent misuse.
Is the IP PIN the same as the IRS PIN for e-filing?
No. The IP PIN is for identity theft protection, while the IRS e-file PIN is used as a signature for electronic filing. They serve different purposes.
Can I stop using the IP PIN after I start?
Generally, once issued, you must use the IP PIN each year. Contact the IRS for specific questions about opting out or changes to your IP PIN status.