Regular readers of the Daszkal Bolton newsletter will recognize this as a reminder about the taxpayer Identity Protection Personal Identification Number (IP PIN) made available by the Internal Revenue Service (IRS). Nonetheless, this opportunity is important enough to warrants additional reminders and encouragement for taxpayers in Florida to request their IP PINs.

As first reported last Spring, the IP PIN is a six-digit number provided to taxpayers deemed eligible to help reduce and prevent taxpayer identification fraud. This fraud is what occurs when a taxpayer’s social security number is used to file fraudulent income tax returns.

Taxpayer ID fraud continues to be disproportionally common in certain regions of the country. Unfortunately, South Florida continues to be one of those areas. The silver lining of this fact lies in the willingness of the IRS to issue IP PINs to Florida as well as Georgia and D.C. residents. For most states, these IP PINs are only available to victims of past fraud.

It is important to note that spouses need to apply and obtain individual IP PINs even if they file taxes together. Having an IP PIN enables the IRS to verify the filer’s identity in order to accept an electronic or paper tax return. Furthermore, the IP PIN eliminates the ability for someone other than the taxpayer from filing a tax return with a social security number. A return filed electronically with the right social security number but wrong or absent an IP PIN will be rejected until the right IP PIN is filed or paper return submitted.

While professional tax advisors are unable to apply for IP PINs on behalf of clients, the advisors at Daszkal Bolton are available to answer any questions and assist in clients with the process.