How an IP PIN Can Keep Your Clients Secure
As the 2025 tax season draws near, it’s essential to take proactive steps to safeguard your client’s identity. With tax-related identity theft on the rise, the IRS recommends taxpayers sign up for an Identity Protection Personal Identification Number (IP PIN). This small but powerful six-digit number offers an extra layer of security, helping to prevent fraud and giving you peace of mind when you file.
What is an IP PIN, and Why Your Clients Should Get One?
An IP PIN is a six-digit code that helps protect federal tax returns from being filed fraudulently. If someone tries to file using your client’s Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) without the correct IP PIN, their attempt is blocked. This added layer of security ensures that only the taxpayer, or those they share the IP PIN with, can use their information to file.
Not only does an IP PIN help prevent identity theft, but it also ensures a faster, smoother filing process—so you can focus on other aspects of tax season, worry-free.
Key Deadlines: Why You Should Act Before November 23, 2024
To have an IP PIN ready by tax season, the IRS recommends applying by November 23, 2024. After this date, the IP PIN system will be temporarily unavailable for maintenance until early January 2025. By signing up early, your clients will be prepared when filing season begins, with the peace of mind that their personal information is secure.
Starting in early January 2025, participants in the IP PIN program will need to retrieve their updated IP PINs for the new tax season. This yearly renewal is essential for maintaining security, as the IRS issues a fresh IP PIN each calendar year.
How to Sign Up for an IP PIN
Applying for an IP PIN is straightforward, and the quickest way to obtain one is through the IRS Online Account. Here’s how:
- Create or Log into Your IRS Online Account: Visit IRS.gov and sign in or create an account if you haven’t done so already.
- Verify Your Identity: The IRS will require proof of identity, a process that may include documents to confirm your personal details. Once verified, you’ll be eligible to request an IP PIN for yourself and, if applicable, for spouses and dependents.
- Request Your IP PIN: After identity verification, head to the “Profile” tab to submit your IP PIN request.
If you’re unable to use the online portal, you can also apply in person at a Taxpayer Assistance Center, where IRS representatives can guide you through the process.
Using Your IP PIN During Filing
Once issued, your client will need to use their IP PIN for any federal tax returns they file within that calendar year, including previous years if necessary. Their IP PIN should be added to both electronic and paper returns to verify their identity and expedite the processing of filing a return.
It’s important for taxpayers to keep their IP PIN secure. The IRS advises all taxpayers to only share this number with their tax preparer. Remember, the IRS will never ask for a taxpayer’s IP PIN via phone, email, or text—so it’s important that taxpayers keep it safe and only provide it to those individuals they trust.
Additional Tips for Managing an IP PIN
Here are a few more tips to help make your client’s IP PIN experience smooth and effective:
- Log in Annually for New IP PINs: Each year, they will need to access their IRS Online Account to retrieve their updated IP PIN.
- Keep Your IP PIN Confidential: Avoid sharing your IP PIN outside of trusted parties, as it’s crucial to ensuring your information remains safe.
- Retrieving Their IP PIN if Misplaced: They can access their current IP PIN anytime by logging into their IRS Online Account.
Why Now is the Time to Act
With tax season fast approaching, setting up an IP PIN can be a game-changer for preventing identity theft and ensuring a smooth filing experience. Protecting you and your clients’ identity has never been easier—when they sign-up they are taking control of their information, and making tax season a more secure, worry-free experience for everyone.
For more resources and guidance on tax season, explore our latest articles on Swift Financial Partners’ Resource Page. Stay informed, stay secure, and let’s make this tax season your best yet!
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