The Benefits of Having an IP PIN

In an era where identity theft is becoming increasingly sophisticated, the IRS is assigning more Identity Protection PINs to at risk taxpayers. While the assignment of an IP PIN can cause issues with filing your return, it can be an effective measure to safeguard your tax-related information.. We understand the importance of financial security, and we're here to explain why obtaining an IP PIN may be a smart move for you.

What is an IP PIN?

An IP PIN is a six-digit number assigned by the IRS to certain taxpayers to help prevent the misuse of their, and even their dependents, Social Security number on fraudulent federal income tax returns. Once you receive an IP PIN, it must be used when filing your tax return, adding an extra layer of security to your personal and financial information.

Benefits of Having an IP PIN:

1. Enhanced Security - The primary benefit of an IP PIN is the enhanced protection it provides against identity theft. With an IP PIN, even if a thief obtains your or your dependents Social Security number, they won't be able to file a fraudulent tax return without this unique number.

2. Peace of Mind - Knowing that your tax return is protected with an additional layer of security can provide significant peace of mind. This assurance allows you to focus on other aspects of your financial planning without worrying about potential identity theft.

3. Faster Refunds - If you're a victim of tax-related identity theft, resolving the issue and receiving your refund can be a lengthy process. An IP PIN can help you avoid this inconvenience, ensuring that your legitimate tax return is processed without delays.  

4. Protecting Your Right to Claim Certain Dependents - an IP PIN for your dependents is particularly helpful when claiming the child tax credit or credit for other dependents.  If someone else tries to claim your dependent on their tax return, the IRS may deny you the ability to claim the same dependent on your own return. But if the person trying to file a fraudulent tax return does not have your dependents IP PIN, they will not be able to claim them on their tax return.

The IRS has made it easier than ever to obtain an IP PIN. You can apply online through the IRS's website and receive your PIN immediately upon verification of your identity.  While the IP PIN program was initially available to victims of identity theft, it has now been expanded to all taxpayers who can verify their identities. If you've experienced identity theft in the past, have concerns about the security of your personal information or your dependents, or simply want an additional layer of protection, obtaining an IP PIN is a proactive step you can take.

At ABA Tax Planning, we are committed to helping you protect your financial information. An IP PIN is a valuable tool in the fight against identity theft, offering enhanced security and peace of mind. If you have any questions about obtaining an IP PIN or need assistance with your tax filing, we are here to help.

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