Identity Protection PIN
Clients who have previously had their identity stolen for tax-filing purposes are often issued an identity protection personal identification number (“IPPIN”) by the IRS. Once an IPPIN is issued, the IRS will send a letter with an updated IPPIN for each subsequent tax year. (The IPPIN from last year is no longer valid for the current year.)
The IPPIN must be entered on all tax return filings, and it provides an additional layer of authentication when filing a tax return.
For such clients, it is important for practitioners to include the new IPPIN with the return when it is e-filed, otherwise, the return will be rejected.
As discussed on page 56 of the Tax Year 2019 M+O=CPE Individual Tax Year-End Workshop Reference Book, taxpayers who reside in certain states and who wish to obtain an IPPIN are now permitted to obtain one on an optional basis. In prior years, there was no way to obtain an IPPIN unless the IRS issued one after a client’s tax identity was stolen.
Taxpayers who filed their 2018 income tax returns as a resident of any of the following locations can obtain an IPPIN for use in filing their 2019 returns: Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Illinois, Maryland, Michigan, Nevada, New Jersey, New Mexico, New York, North Carolina, Pennsylvania, Rhode Island, Texas or Washington.
Taxpayers can obtain an IPPIN from the IRS at: https://www.irs.gov/identity-theft-fraud-scams/get-an-identity-protection-pin