Increasingly, sophisticated and organized syndicates are committing these crimes in high-volumes of stolen records through data breaches and database intrusions. That’s why the IRS, states and tax industry are committed to working together to combat tax-related identity theft and refund fraud.
This group, called the Security Summit, has announced stronger protections for taxpayers and the nation’s tax system that will go into effect for the 2016 tax season.
An IP PIN is a 6-digit number assigned to eligible taxpayers to help prevent the misuse of their Social Security Number on fraudulent federal income tax returns.
Once the IRS sends you an IP PIN, you must use it to confirm your identity on your current tax return and any delinquent returns filed during the calendar year.
This will be another layer of protection because identity thieves may already have your name and Social Security number, but perhaps not your driver’s license number.You state tax agency may also have changes specific to your location.Review your state’s tax agency website for additional details. The new measures attack tax-related identity theft from multiple sides. A few highlights: For these and other tips, see Publication 4524, Security Awareness for Taxpayers, available at Our goal is to verify your identity and the validity of your return before the return is accepted for processing.The tax software sorts the returns and sends the federal return to the IRS and the state return to the proper revenue agency.This is why you receive your federal and state refunds separately and at different times.All you need to do is follow gov directions and report whether or not you filed the return. The IRS, states and tax industry all follow this practice, and this new effort will protect taxpayers even more.