A new year marks the start of another tax season, bringing with it the usual challenges of navigating the complex US tax code and avoiding scams. One particularly concerning scam involves fraudsters filing a tax return in your name to claim a refund. Many victims only realize they've been targeted when they attempt to file their own return, uncovering a complicated issue that can take weeks or even months to resolve.

The risk of tax-related identity theft is elevated this year due to a series of high-profile data breaches in 2024. Personal information, including Social Security numbers, has become more accessible on the dark web, providing fraudsters with the tools they need to exploit unsuspecting taxpayers. As tax season progresses, this vulnerability becomes a significant concern for individuals and businesses alike.

How the IRS’s Identity Protection PIN Can Help

To combat this type of fraud, the IRS offers a proactive solution: the Identity Protection PIN (IP PIN). This six-digit PIN acts as a layer of authentication to ensure that only your legitimate tax return is accepted. If a return is filed without the correct IP PIN, it will be rejected, preventing unauthorized filings in your name.

Initially, the IP PIN program was limited to victims of identity theft or those flagged by the IRS as high-risk individuals. However, the program has now been expanded to all taxpayers who wish to voluntarily enroll. The process is straightforward and can be completed in three ways:

• Online: Use the government’s ID.me service to verify your identity. This option typically takes 15–20 minutes.
• By Mail: Submit a paper application to the IRS.
• In-Person: Schedule an appointment at an IRS office for identity verification.

Once enrolled, your IP PIN is valid for one year and cannot be reused. Each year, you can opt to receive a new PIN, providing an added layer of security. This feature prevents fraudsters from exploiting a stolen PIN even after its use in a prior tax season.

Best Practices for Taxpayers

For most taxpayers, opting for an annually renewed IP PIN is the ideal choice. This ensures you have updated protection each year without the need to manage multiple PINs simultaneously. If you ever misplace your PIN, you can retrieve it by logging into your IRS account using your ID.me credentials. To streamline this process, consider using a password manager to securely store your account credentials, including a strong, unique password for your government account.

By adopting these best practices, you can reduce the stress of tax season and protect yourself against fraud. For more information, visit the IRS’s FAQ page on the Identity Protection PIN program. This simple yet effective system offers much-needed peace of mind during the often overwhelming task of filing your US tax return.