The IRS recently issued Identity Protection Personal Identification Numbers (IP PIN) for identity theft victims. The unique six-digit pin number will be used on 2015 income tax returns to verify taxpayer identity.
Taxpayers will need to provide the CP 01A letter which lists the IP PIN to their tax advisors. If a return is filed with an incorrect or missing IP PIN, the return will be delayed or possibly not accepted until the identity of the taxpayer is confirmed.
An IP PIN is a unique 6 digit sequence that helps the IRS verify a taxpayer’s identity. When you have an IP PIN, it prevents someone else from filing a tax return with your Social Security Number (SSN) since returns which don’t include the correct IP PIN may be booted back. If a tax return is e-filed with your SSN but an incorrect or missing IP PIN, the IRS e-file system will reject the return until you submit the return with the correct IP PIN or you file a return on paper. If a tax return is filed on paper with your SSN but an incorrect or missing IP PIN, the IRS will delay processing the return – including any refund due – while they determine the validity of the return.
If you’re filing delinquent returns in 2016 for the years 2012, 2013 or 2014, use the same IP PIN issued with the CP01A notice. You do not need to use an IP PIN to file a federal form 1040X, Amended U.S. Individual Income Tax Return, a federal form 4868,Application for Automatic Extension of Time To File U.S. Individual Income Tax Return, or federal form 433-D, Installment Agreement for any year.
Not all taxpayers will receive a CP01A notice with an IP PIN and you shouldn’t confuse the IP PIN with the 5 digit PIN you use to e-file your returns: those PINS aren’t interchangeable.
Contact our tax advisor at GKM if you have further questions regarding your IP PIN.