IRS urges tax pros to protect clients with IP PINs

The Internal Revenue Service and its Security Summit partners in the tax prep industry and state tax authorities are encouraging tax professionals Tuesday to inform their clients about Identity Protection Personal Information Numbers to safeguard against identity theft.

The IRS and its Security Summit partners have embarked on a public awareness campaign this summer to prod tax pros into beefing up cybersecurity at their own workplaces and among their clients to protect client data. This week they are asking tax pros to share information about the IP PIN Opt-In Program. The alerts are being issued each Tuesday for five weeks to coincide with the IRS Nationwide Tax Forums.

“These identity protection numbers provide an extra layer of safety to protect people against tax-related fraud tied to using stolen personal information,” said IRS Commissioner Chuck Rettig in a statement. “Following work by the IRS, the IP PIN program is now available to anyone who can verify their identity. We urge tax professionals to encourage their clients to protect themselves through the IP PIN program.”

The Electronic Tax Administration Advisory Committee, or ETAAC, pointed to the importance of the IP PIN to taxpayers and tax professionals in its annual report (see story).

“The IP PIN is the number one security tool currently available to taxpayers from the IRS,” the independent advisory group said in its annual report to Congress. “This tool is the key to making it more difficult for criminals to file false tax returns in the name of the taxpayer. In our view, the benefits of increased IP PIN use are many.”

The ETAAC recommended the IRS continue to highlight and promote the IP PIN through a public awareness effort. The IRS is taking steps to do that, including this summer’s campaign and building off awareness of special items such as Publication 5367, IP PIN Opt-In Program for Taxpayers, in English and Spanish, allowing tax professionals to print and share IP PIN information with clients. There are also special posters available in English and Spanish.

For security reasons, tax professionals cannot obtain an IP PIN on behalf of clients. Taxpayers have to get their own IP PIN.

Summit partners urged taxpayers and tax professionals to be careful and protect the IP PIN from identity thieves. Taxpayers should share their IP PIN only with their trusted tax prep provider. Tax professionals should never store clients’ IP PINs on computer systems. Also, the IRS will never call, email or text either taxpayers or tax preparers to request the IP PIN.

Tax professionals who are hit with data theft can help clients by urging them to quickly obtain an IP PIN. Even if an identity thief already has filed a fraudulent return, an IP PIN would still offer protections for later years and prevent taxpayers from being repeat victims of tax-related identity theft.

To get an IP PIN, the IRS offers the Get an IP PIN online tool.