Tax Pros Warned by Security Summit To Be Wary of Pandemic-related Schemes

The Security Summit and the IRS released IR-2021-158 on July 28, 2021.  In this issue, tax professionals are encouraged to advise their clients to protect themselves from identity theft by acquiring an Identity Protection PIN.  The IRS has created an IP PIN Opt-In Program poster for Taxpayers, in English and Spanish, so that tax professionals can print and share the IP PIN information with clients. Taxpayers must obtain their own IP PINs.  

“An Identity Protection PIN prevents someone else from filing a tax return using your Social Security number,” said Chuck Rettig, IRS commissioner. “We’ve now made the IP PIN available to anyone who can verify their identity. This is a free way for taxpayers to protect themselves, but we need the help of tax professionals to make sure more people know about it.”

For security reasons, tax professionals are not allowed to apply on behalf of clients. Taxpayers will file for new IP PINs again in January 2022. 

Here are a few things taxpayers should know about the IP PIN:

  • It’s a six-digit number known only to the taxpayer and the IRS.
  • The opt-in program is voluntary.
  • The IP PIN should be entered onto the electronic tax return when prompted by the software product or onto a paper return next to the signature line.
  • The IP PIN is valid for one calendar year; taxpayers must obtain a new IP PIN each year.
  • Only dependents who can verify their identities may obtain an IP PIN.
  • IP PIN users should never share their numbers with anyone but the IRS and their trusted tax preparation provider. The IRS will never call, email, or text a request for the IP PIN.

SPS/GZ is a full-service tax reporting firm that provides personalized service and exceptional support, utilizing state-of-the-art technology to create and e-file Forms 1099, Affordable Care Act tax forms, and Forms 3921 and 3922.  Reach out today at sales@greenzapato.com or call at (888)375-3049. 

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