According to the IRS website, 597,000 confirmed tax identity thefts were reported for 2017 tax returns. This type of theft occurs when someone uses YOUR Social Security number to file a false tax return, in order to receive a refund.
One way the IRS is working to lower the number of tax-related identity theft through their use of the Identity Protection Pin. This program is available to anyone who has been invited to participate, OR you filed a federal tax return last year with an address in Florida, Georgia, District of Columbia, Michigan, California, Maryland, Nevada, Delaware, Illinois, or Rhode Island.
This Identity Protection Pin is a six-digit automated PIN given to the taxpayer once they create their application for one. After their PIN is created, a tax return using their personal information MUST be filed using the IP Pin-if the PIN is not given, your filing will not be accepted by the IRS.
While an extra step in the filing process, getting an IP Pin is something eligible taxpayers are considering to alleviate their chances of becoming a victim to tax-related identity theft.
If you have any questions, feel free to contact us.
We know there are a lot of changes to the 2018 tax code, and this might be the year to consult a tax professional!