Identity protection tips from the IRS

It's a topic we're all (painfully) aware of: the need to protect our identities and personal confidential information. As we all know, social security numbers are a hot commodity, and hackers will never stop trying to find new ones to exploit. Luckily, the kind folks at the IRS have given us a couple of helpful tools to protect our Social Security Numbers and prevent fraudulent tax filings.

IRS Online Account

The IRS now offers an online personal account for every taxpayer. You can use your account for a number of useful things, including:

• Accessing your tax records, including checking your refund and/or balance due, for each year

• Making and viewing tax payments

• Accessing a copy of your IRS notices digitally

• Setting up notifications for account activity or updates

• Reviewing and accepting tax professional authorization requests (so I can talk to the IRS for you)

This is one way to easily check your personal tax status with the IRS, and would help you quickly catch a fraudulent return filed under your social security number. You can sign up for an account at https://www.irs.gov/payments/online-account-for-individuals. Simply click on "Sign in to your online account" and then choose "Create a new account (ID.me)" to get started. There is an identification verification process which is easily completed online. (When I went through it, it took about 10 minutes via video call with an agent.)

Identity Protection PIN

Each calendar year, you can receive an Identity Protection PIN (IP PIN) from the IRS. An IP PIN is a 6-digit code that must be entered on your tax return in order for the IRS to process it, and you are the only person who can access it. This is the best way to prevent fraudulent tax refunds from being filed under your social security number.

Key facts:

• An IP PIN is valid for one calendar year

• A new IP PIN is generated each year for your account

• Logging back into your online account will display your current IP PIN

• Your IP PIN must be used when filing any federal tax returns during the year, including prior year returns

• Each individual must apply for their own IP PIN; married couples filing jointly do not share one

You can request an IP PIN one of three ways:

1. Via your Online Account;

2. By mailing in Form 15227; or

3. By making an in-person appointment at your local IRS Service Center.

The IP PIN system is currently undergoing maintenance and will not be available again until early January 2025. New IP PINs are being generated for the 2025 filing season right now, so online enrollees can retrieve their new IP PIN starting early January 2025. If you want to learn more, check out the FAQs about the identity protection personal identification number (IP PIN).

File your return securely

In addition to off-the-shelf solutions like TurboTax, TaxAct, H&R Block, and others, you can file your returns with an IRS Free File partner if your income is under $79k, or possibly even directly with the IRS through the Direct File pilot program (this is in the pilot stage and not available to everyone).

Find a trustworthy tax preparer

If you're not the kind of person who wants to prepare their own tax return, be sure to find a trustworthy and legitimate tax preparer. A disturbingly large number of fraudulent tax returns are filed by incompetent or dishonest tax preparers; google "tax preparer fraud" and you'll see link after link of tax preparers who were caught stealing refunds, claiming credits or benefits that weren't allowed, and worse.

According to the IRS, 70% of the efforts of the Criminal Investigation division are focused on questionable refund schemes, return preparer fraud, abusive tax schemes, and more. You can avoid this by finding registered and credentialled tax preparers participating in the PTIN program. The PTIN program requires registration with the IRS, and anyone who prepares tax returns for a fee must be enrolled.

As a licensed CPA, I am enrolled in the PTIN program, and in order to keep my license active I complete at least 40 hours of continuing professional education each year. I have unlimited representation rights before the IRS, along with attorneys and enrolled agents, which allows me to represent my clients on any matter before the IRS.

I hope this is helpful and informative. Feel free to contact me with any questions!