Should I Opt In to Receive an IP PIN?

What is an IP PIN?

Since 2011, the IRS has helped provide a way to combat identity theft. By issuing certain taxpayers an identity protection personal identification number (IP PIN), the IRS is able to verify a taxpayer's identity to proactively limit the amount of fraudulent tax returns the IRS receives. Each year, taxpayers either get a CP01A notice in the mail from the IRS or they can utilize the “Get an IP PIN tool” to retrieve their six-digit IP PIN. This pin number is entered on your tax return and verifies that the return has not been fraudulently filed. As of January 12, 2021, the IRS has approved this tool for all taxpayers, not just victims of identity theft.

How do I opt in?

There are three ways to opt in to this program. You can do it by:

1. Mailing or faxing a Form 15227 (this is for the following tax year)
   • Requirements:
     • Valid SSN or ITIN
     • Adjusted gross income (AGI) of $72,000 or less
     • Access to a telephone (to verify your information)
2. Using the Get an IP PIN tool on IRS.gov (irs.gov/GetAnIPPIN)
   • Quick, streamlined process
     • You will need:
       • To create an account
       • SSN or ITIN
       • Information listed at irs.gov/SecureAccess
3. Visiting an IRS Taxpayer Assistance Center in person

Note: The Get an IP PIN tool is usually unavailable from mid-November through mid-January each year.

Can I opt out?

Currently, taxpayers that opt in must include the IP PIN on each year’s tax return thereafter. They are not currently able to opt out of this program; however, the IRS is planning to create an opt-out feature in 2022.

What if I move during the tax year?

If you file (or have previously filed) a Form 15227 and move during the tax year, you must file a change of address by using Form 8822 to ensure that the CP01A notice is mailed to your new address for use in the upcoming tax year.

Should I opt in to this program?

It may be beneficial to opt in to this IP PIN program in order to ease tax-related identity theft concerns. As data breaches increase, it may be smart to consider opting in to this program.

In summation, an IP PIN is a six-digit number that is included on a taxpayer’s tax return once they opt in to the program. Opting in to the program may be beneficial in order to protect yourself from tax-related identity theft. Give us a call if you have any questions about the program or if you would like us to set you up with an IP PIN. Today’s hesitation can create tomorrow’s frustration.