Tim’s Tax News on the Tenth – February 2021

IRS ANNOUNCES ALL TAXPAYERS ARE NOW ELIGIBLE FOR AN IDENTITY PROTECTION PIN

Late last month the IRS announced that it had expanded the Identity Protection PIN Opt-In Program to all taxpayers who can verify their identity.

The Identity Protection PIN is a six-digit code known only to the taxpayer and to the IRS. The use of a PIN helps prevent identity thieves from filing a fraudulent tax return using a taxpayer’s personal financial information that they may have obtained via other sources.

Here are a few key things to know about the IRS IP PIN Opt-In program.

• This is a voluntary program.
• Taxpayers must pass a rigorous identity verification process to use the program.
• Spouses and dependents are eligible for an IP PIN if they can verify their identities.
• An IP PIN is valid for a calendar year.
• People must get a new IP PIN each filing season.
• The online IP PIN tool is offline between November and mid-January each year.
• Correct IP PINs must be entered on electronic and paper tax returns to avoid rejections and delays.
• Taxpayers should never share their IP PIN with anyone but their trusted tax provider.
• The IRS will never call, text, or email requesting their IP PIN.
• People should beware of scams to steal their IP PIN.
• There currently is no opt-out option but the IRS is working on one for 2022.

How to get an IP PIN
Taxpayers who want an IP PIN for 2021 should use the Get an IP PIN tool on IRS.gov. This tool uses Secure Access authentication to verify a person's identity. Taxpayers should have the following information ready before they try to use the Get An IP PIN tool.

• Email address
• Social Security Number (SSN) or Individual Tax Identification Number (ITIN)
• Tax filing status and mailing address
• One financial account number linked to your name:
• Credit card – last 8 digits (no American Express, debit, or corporate cards) or
• Student loan – (Enter the student loan account number provided on your statement. The account number may contain both numbers and letters. Do not include any symbols.) Additionally, we can't verify student loans issued by Nelnet. or
• Mortgage or home equity loan or
• Home equity line of credit (HELOC) or
• Auto loan
• Mobile phone linked to your name (for faster registration) or ability to receive an activation code by mail.

There is no need to file a Form 14039, Identity Theft Affidavit, to join the program.

Once a taxpayer has authenticated their identity, their 2021 IP PIN immediately will be revealed to them. This PIN must be used when prompted by an electronic tax return filing system or written near the signature line on paper tax returns.

Confirmed identity theft victims

Current tax-related identity theft victims who have been receiving IP PINs by mail will experience no change. Also, Taxpayers who are confirmed identity theft victims or who have filed an identity theft affidavit because of suspected stolen identity refund fraud will automatically receive an IP PIN by mail once their cases are resolved.

If you would like more details, please do not hesitate to call our office. Our office has been successful in helping taxpayers with IRS and IDOR collection problems for over 29 years. If you have a tax or debt problem, please contact me at 847-705-9698 or thughes@lavellelaw.com and find out how we can help you.

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Lavelle Law, Ltd. is registered with the Illinois Department of Financial and Professional Regulation as an approved continuing education provider for CPE for CPAs and Enrolled Agents. If your organization is seeking CPE courses in the area of Business Law, Innocent Spouse Relief, IRS Collections, Tax Scams (including ID Theft) or other areas in tax law that can be taught at your office, please contact me at thughes@lavellelaw.com