IRS offers free IP PIN to prevent tax fraud

Filing taxes can be stressful, especially if someone uses your identity to claim your refund. To prevent this, the IRS offers a free Identity Protection PIN (IP PIN) to most U.S. taxpayers. This 6-digit code helps ensure that only you can file taxes in your name. Every year, taxpayers receive a new IP PIN. When filing electronically, tax software will prompt you to enter the PIN. For paper filers, there is a space for the PIN on the 1040 form near the signature line. To get an IP PIN, you need to create an online account with the IRS. If you already have an account with ID.me, you can use that. You'll need a driver's license or another government ID to verify your identity. After setting up your account, you can request the PIN under the Profile tab each year. It’s important to note that an IP PIN is different from the signature PIN. The signature PIN is a self-selected code used to sign electronic tax returns and does not provide the same level of identity security. If you receive an IP PIN but later decide not to use it, you can easily opt out through your IRS account. However, if you have been a victim of identity theft, using the IP PIN is mandatory. If someone has already claimed your refund, you won’t be able to e-file. Instead, you'll need to file a paper return with Form 14039, which is the identity theft affidavit. The IRS will then investigate, but it may take many months to resolve the issue.