Request ID Theft PIN?

[Justataxguy]

Client received a letter from a former health insurance provider that their information may have been compromised by hackers. Spouse and son who had not been on insurance for several years also got letters. Client would like to know if they can request an ID theft PIN from the IRS before something happens or are these only issued after some crook uses your information for a phony tax return?

[David1980]

On the Form 14039 one of the boxes indicates "I have experienced an event involving my personal information that may at some future time affect my federal tax records." I think that would apply. I'm not sure that'll actually result in an IP PIN or not though. "Complete and submit this form if you are an actual or potential victim of identity theft and would like the IRS to mark your account to identify questionable activity."

There's a place on irs.gov that lets you "get an identity protection PIN" and in eligibility you may choose to get an IP PIN there if you filed a return with an address in Florida, Georgia, or DC (obviously the high fraud states) or received a letter or CP01F notice.

[Jiggers]

Years ago, when e-filing first started, didn't we have to enter something like the prior year AGI? That is so long ago that my memory fails me.

So if the IRS is really concerned with identity theft, why doesn't the IRS required the AGI plus the PIN used on the prior year return? Or something that would require having a copy of the prior year return for information.

And a second suggestion would be to hold all refunds until the W-2's/1099's with withholding are in. In other words, no refund until those amounts match.

But this makes sense!

[David1980]

Years ago, when e-filing first started, didn't we have to enter something like the prior year AGI? That is so long ago that my memory fails me.

So if the IRS is really concerned with identity theft, why doesn't the IRS required the AGI plus the PIN used on the prior year return? Or something that would require having a copy of the prior year return for information.

Still do, with the self-select PIN method of signing a return. Also the DOB has to match. None of that is necessary with the practitioner pin method. Seeing as they already have the ability to match the DOB it makes no sense they wouldn't verify that with paid preparer e-files as well. What reason can there really be to not?

[Burke]

Client received a letter from a former health insurance provider that their information may have been compromised by hackers. Spouse and son who had not been on insurance for several years also got letters. Client would like to know if they can request an ID theft PIN from the IRS before something happens or are these only issued after some crook uses your information for a phony tax return?

I believe there is a site on the IRS website for the voluntary issuance of such a PIN.

[taxea]

https://www.irs.gov/Individuals/Get-An-Identity-Protection-PIN