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In the fourth release of its special summer series, the Security Summit—a collaborative effort involving the IRS, state tax agencies, and the tax community, including tax preparation firms, tax software developers, financial and payroll product processors, tax professional organizations, and financial institutions—has underscored the importance of the IRS Identity Protection PIN (IP PIN) and IRS online accounts. These tools are vital for safeguarding against tax-related identity theft, offering an extra layer of security for both taxpayers and tax professionals handling sensitive information.
The IP PIN: A Crucial Defense The IP PIN, a six-digit number issued by the IRS, serves as a critical barrier against identity fraud. Taxpayers who obtain an IP PIN must include this number on their tax returns before electronically filing, providing added protection. The IRS encourages all tax professionals and taxpayers to set up an online IRS account to access tax information and guard against scammers creating fraudulent accounts.
Danny Werfel, IRS Commissioner, stated: "To address the ongoing and evolving threats from identity thieves, these tools provide an additional layer of security. We urge everyone to enroll in the IP PIN and set up their online account to protect their valuable information and avoid future tax issues."
Collaborative Efforts in Tax System Protection Since 2015, the Security Summit—a collaboration between state tax agencies, the tax industry, and the IRS—has worked to protect the nation’s tax system from fraud and identity theft. This series of eight press releases is part of an annual educational effort also presented at the National Tax Forums, which this year will be held in Orlando, Baltimore, Dallas, and San Diego.
Statistics and Recommendations To date, over 10.4 million taxpayers have opted to obtain an IP PIN. However, only a small fraction of those affected by identity theft enroll in the program. The Electronic Tax Administration Advisory Committee (ETAAC) has highlighted that the IP PIN is an effective anti-fraud tool, but its adoption remains low. In 2022, only 525,000 taxpayers enrolled in the program, despite over 1.1 million identity theft reports.
Precautions and Enrollment Process Taxpayers should protect their IP PIN and share it only with trusted tax providers. Tax professionals should not store IP PINs in computer systems and should alert their clients to potential scams requesting the PIN. The IRS will never ask for the IP PIN via phone, email, or text message.
To obtain an IP PIN, taxpayers can visit the IRS online tool, which requires identity verification through ID.me. If online verification is not possible, they can submit Form 15227 or schedule an appointment at a Taxpayer Assistance Center.
Additional Resources Tax professionals experiencing data theft should report the incident to their local IRS liaison, visit the Federation of Tax Administrators, and consult IRS publications for additional security recommendations. They should also subscribe to e-News to stay informed about updates and security resources.
The Security Summit continues its mission to strengthen the protection of the tax system and support taxpayers and tax professionals in combating fraud and identity theft.
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