Ask the expert: With tax season coming, how can I protect against identity theft?

Expert Answer: With identity theft and taxpayer fraud on the rise, the Internal Revenue Service (IRS) is encouraging taxpayers to take extra caution when filing tax returns. One simple way to help safeguard your identity is to create an identity protection personal identification number (IP PIN) through the IRS. An IP PIN is a six-digit number that helps the IRS verify your identity when you are filing your tax return.

The IP PIN program was initially implemented to help higher-risk groups of taxpayers, such as high-net-worth individuals and those who had previously reported identity theft to the IRS. However, as tax-related identity theft grew, the IRS expanded the program to allow all taxpayers to request an IP PIN voluntarily. This move empowers taxpayers to be proactive in protecting their tax filings.

Taxpayers who enroll in the program must use their IP PIN when filing their federal tax return, either electronically or on paper. The IP PIN helps verify the taxpayer’s identity, ensuring that only authorized individuals can submit a return with their SSN. If an individual’s IP PIN is missing or incorrect, the IRS will reject the filing, helping prevent unauthorized filings.

You can receive an IP PIN through the IRS website by verifying your identity using the “Get an IP PIN” online tool. Once enrolled, the IRS issues a new IP PIN each year to maintain the security of your information. You can always retrieve your IP PIN if you lose it. Find instructions on how to do so via the IRS website.

In addition to the IRS’s IP PIN program, you can also take additional precautions. Here are some recommendations:

• Use Trusted Software or Hire a Reputable Tax Preparer

• Avoid Phishing Scams and Be Suspicious of Emails or Calls from Anyone Claiming to Be from the IRS.

• Enable Two-Factor Authentication for Online Accounts

• Regularly Monitor Financial Accounts for Unauthorized Activity

• Safeguard Personal Documents and Shred Any Sensitive Documents You No Longer Need

By providing taxpayers with an extra layer of security, the IRS’s IP PIN program helps prevent unauthorized access to sensitive information. Working with a trusted tax professional can help reduce the risk of fraud and identity theft. With an experienced estate planning attorney, you can pursue strategies to reduce the amount of taxable assets you have and help you plan for your future.

For educational purposes only. This is not legal advice. Lisa Hostetler Brown is a Certified Elder Law Attorney certified by the National Elder Law Foundation. 2 Hampton Hall, Bluffton, SC 29910 | 843-757-5294 | LawyerLisa.com/Bluffton