The Internal Revenue Service (IRS) has expanded its Identity Protection PIN program, further enabling you to protect yourself against identity theft and tax fraud. In fact, anyone able to prove their identity now has the ability to further defend against scammers thanks to recent efforts by the IRS.
Since the onset of COVID-19, instances of identity theft have soared, fueled by criminals’ efforts to get their hands on the more than $2 trillion in aid that the government has so far provided to individuals and small businesses. Those recent assistance programs have included the Coronavirus Aid, Relief, and Economic Security (CARES) Act in the form of enhanced unemployment benefits, stimulus checks, and Paycheck Protection Program (PPP) loans.
According to the Federal Trade Commission, 4.7 million cases of identity theft or fraud were reported in 2020, a whopping 45% increase from the 3.3 million cases reported in 2019.
One popular form of fraud is tax identity fraud, where criminals who have somehow obtained an individual’s social security number file a fraudulent tax return on that person’s behalf in order to steal their tax refund. To help stave off this type of fraud, the IRS recently expanded its Identity Protection PIN Opt-In Program to all taxpayers, so long as they are able to verify their identity. Starting this year, taxpayers can voluntarily opt in to the program to obtain a unique, six-digit Identity Protection PIN code that must be provided when they electronically file their tax return. Electronic tax returns submitted without the IP PIN will be rejected, while paper returns submitted without it will be subject to additional verification steps and reviewed more closely for fraud.
How to Opt-in for an IRS Fraud IP PIN
Anyone interested in obtaining an IP PIN for 2021 can do so here. If you do not yet have an IRS account, you will need to first go through the IRS’s Secure Access authentication process in order to take part in the program. The IRS’s Fraud IP PIN numbers are valid for one calendar year.
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Alpine Bank Staff
Alpine Bank is an independent, employee-owned organization with headquarters in Glenwood Springs and banking offices across Colorado’s Western Slope, mountains and Front Range.
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