Tax identity theft occurs when a thief files a tax return for you and presumably takes your refund. If they have your name, address and citizen service number, this is possible. If you’ve ever filed a return and it’s rejected because they already have it, you’ve become a victim of tax identity theft.
The tax authorities do have that proactive measures To identify and fix these problems is known as the Taxpayer Protection Program, but they are often slow. If they see a suspicious tax return filed with your name and Social, they will send you a letter.
Yes. A letter. In 2026. 🤣
And in 2024, they flagged 2.4 to 3.6 million returns for possible identity theft. Of that they confirmed 105,000 fraudulent returns and blocked refunds.
So if you’re concerned, sign up for the IRS Identity Protection PIN program.
Once you enroll in the program, the IRS will send you a six-digit IP PIN each year with a CP01A notification that you must put it on your tax return or they won’t accept it. You also need a PIN code for returns from previous years.
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Is obtaining an IP PIN necessary?
If you have never been a victim of identity theft, there is no compelling reason to do so. You’ll add a new layer of complexity to your tax return, which is intended for people with an identity theft problem.
If you don’t mind the added complexity, there are few downsides to doing this.
When you sign up for the program, you will receive a new PIN in the mail every year. You can also look these up online. If you have lost the letter, you do not have to request a letter again and wait. Just log in and look it up.
Should you get one?
The process of getting one is quite simple, especially if you have already created an ID.me account. That’s the part that takes the longest.
Whether you should set it up is up to you.
If you do, here’s how to get one:
1. Register with the IRS
Go to the IRS Online Account for Individuals page and tap/click the blue ‘Sign in or create account’ button. This will take you to the ID.me login or registration page.
If you’ve never done this before, you’ll need to create an account and verify your identity with an ID photo and a selfie. If you’re not comfortable sending photos of this, you can also have a live video call with an ID.me agent to confirm your identity.
If you register, I recommend that you use a secure classified email address.
2. Click on Profile
After logging in, click on Profile at the top right and in the left menu you will see Identity Protection PIN as an option:
Click on that.
3. Sign up for IP PIN
It’s very simple: just click on the blue ‘Register for IP PIN’ button and confirm that you are registering for the program.
You can choose to enroll for the current year only, or you can enroll in the program forever.
4. Log out
If the IRS has enrolled you in the program due to prior identity theft, you will not be able to opt out.
If you have registered voluntarily, you can log out and stop using the PIN code.
Then, each January, the IRS will give you a new PIN to use on your tax return. If you do not specify this, they will not accept your return.
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