Filing an income tax return is few people’s idea of fun — but it’s worse when you can’t file the return because somebody using your identity already did.
That increasingly common type of fraud can be prevented by using an Identity Protection PIN, available free to most U.S. taxpayers through the Internal Revenue Service.
The IP PIN is mandatory for filing of taxes by people who have been victims of certain types of identity fraud, but it can also provide security as an optional measure.
The IRS’s online Q&A walks a taxpayer through the process. Here are some of the main elements:
How does the PIN work?
Every year, the taxpayer is given a new 6-digit code that allows filing of income taxes under their identity. They’ll be prompted by their tax software or electronic form to enter it. For those filing by paper, the 1040 form has a space for the PIN near the signature line.
How do I request one?
First, you need an online account with the IRS. If you already have an account with ID.me — the identity verification service used by many federal and state agencies — you don’t have to set up a new one. It requires a driver’s license or other government ID card; the other information you need to provide is data that the federal government most likely already has.
Once you have an IRS account, you’ll find the option of requesting the PIN under the Profile tab. Every year after the first time, the new PIN will be available through your account.
I already use a signature PIN when I file my taxes. Is that the same thing?
No. The self-selected 5-digit code you enter to complete an electronic signature on your tax return does not have the same identity security.
What if I request a PIN and then decide I don’t want to use it going forward?
If you’re not required to use it because of past identity theft, you can opt out through your IRS account. Those taxpayers for whom it is mandatory will have received what’s called a CP01A notice from the IRS.
Too late — someone already claimed a tax refund under my name for this year. What now?
These instructions from the IRS lay out the procedure: You’ll probably be blocked from e-filing, so you’ll need to file a paper return with Form 14039, the identity theft affidavit. The agency will investigate the matter. A resolution is likely to take months, sometimes more than a year.