September 2016

Tax Insight–September 2016              Rita Bhayani

Tax Notes

Individual federal tax returns for which the IRS granted an automatic six-month extension are due on October 17.

The Identity Protection PIN (IP PIN)

The IRS IP PIN is a six-digit number assigned to eligible taxpayers to help prevent the fraudulent use of their social security number on a fraudulent federal income tax return. An IP PIN helps the IRS verify a taxpayer’s identity and accept his or her electronic or paper tax return. When you have an IP PIN, it prevents someone else from filing a tax return with your SSN.

If someone e-files a return with your SSN and an incorrect or missing IP PIN, the IRS system will reject the return until it is submitted with the correct IP PIN. If the same thing happens with a paper filed return, the IRS will delay processing the return and hold off issuing any refund until it determines whether the return is valid. This is for your protection.

You’re eligible for an IP PIN if:

You were a victim of identity theft and the IRS has resolved your case and placed an identity theft indicator on your account. In December or January, the IRS will send you a CP01A Notice containing your IP PIN.

You filed your federal tax return last year as a resident of Florida, Georgia or the District of Columbia.

You received an IRS letter inviting you to ‘opt-in’ to get an IP PIN.

If you filed your tax return last year with an address in Florida, Georgia or the District of Columbia, you are invited to participate in the IP PIN program by going to Get an IP PIN. The IRS does not limit the program to identity theft victims.

Don’t reveal your IP PIN to anyone other than your tax preparer. Reveal it only when you are ready to sign and submit your federal income tax return.

You can’t use your IRS IP PIN on a state income tax return. If your state also issues you an identity protection PIN, only use that number for the state income tax return.

Quote Corner
“The best way to find yourself is to lose yourself in the service of others.” ~Mahatma Gandhi

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