To combat tax-related identity theft, the Internal Revenue Service and its Security Summit partners are enjoining tax preparation firms to step up their efforts to educate clients about the IRS Identity Protection PIN Opt-In Program.
The request was made during the Security Summit’s yearly summer campaign, which this year targeted tax professionals and suggested measures to prevent data theft from their workplaces.
This past year, there was an increase in identity theft as con artists used the epidemic, fake emails, social media posts, unexpected phone calls impersonating IRS agents, and other strategies to steal people’s money and identities.
Tax experts are unable to acquire an IP PIN on behalf of customers due to security concerns. The IP PIN must be obtained by taxpayers.
Scammers frequently use deception or hacking to gain access to private information on the computer systems of taxpayers’ tax professionals.
They submit false tax returns using the stolen data, making it harder for the IRS and law enforcement to catch them.
This is so because the false returns contain accurate financial data. In some instances, con artists may sell the taxpayer’s or tax preparer’s information to other criminals so they can file false tax returns.
The IRS presently offers taxpayers the IP PIN as a security tool. This technique serves to make it more challenging for thieves to submit phoney tax returns under the taxpayer’s name.
A six-digit code known as an Identity Protection PIN (IP PIN) keeps someone from using your Social Security number or Individual Taxpayer Identification Number to file a tax return.
When you file an electronic or paper tax return, the IP PIN, which is only known by you and the IRS, assists in confirming your identity.
“These identity protection numbers offer an additional measure of security to guard against tax-related fraud linked to the use of stolen personal information.
The IP PIN programme is now open to everyone who can prove their identification thanks to work done by the IRS.
According to IRS Commissioner Chuck Rettig, tax professionals are urged to advise their clients to use the IP PIN programme to safeguard themselves.
Taxpayers can conduct a comprehensive authentication check by going to IRS.gov/getanippin. Immediately upon successful authentication, an IP PIN will be made available online. For increased protection, a fresh IP PIN is created annually.
By rejecting any e-filed return without your IP PIN, the IP PIN safeguards your taxpayer’s account even if you are no longer required to file a tax return.
Tech-savvy thieves frequently make innocent people and tax professionals their top targets. When attempting to steal someone’s identity, tax scams frequently feed on their anxiety and tension. Keep in mind that the IRS won’t call you unexpectedly to discuss a tax refund.
You should be aware that the IRS will never contact and demand quick payment by a particular payment method, such as a prepaid debit card, gift card, or wire transfer, when you are approached by prospective scammers. Any taxpayer who owes taxes will often receive a bill in the mail first from the IRS.
The IRS won’t threaten to arrest the taxpayer for nonpayment by calling the neighbourhood police or other law enforcement agencies right away. It won’t also compel payment of taxes without giving taxpayers a chance to dispute or contest the amount owed.
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When data theft occurs, tax professionals can help their clients by advising them to rapidly get an IP PIN.
An IP PIN would provide security for future years and stop taxpayers from becoming repeat victims of tax-related identity theft, even if a thief has already filed a bogus return.
For proven victims of identity theft, the IP PIN procedure has not been altered. Each year, an IP PIN will be automatically sent to these victims.
