Obtaining an IP PIN could help taxpayers prevent such incidents, the agency suggests.
The FBI issued a warning Wednesday, warning Americans about criminals stealing taxpayer identity, filed fake returns and requested a refund.
“Stolen refunds are often redirected by criminals for accounts or addresses managed by administrators, such as bank accounts, prepaid debit cards, email drops, and/or third-party accounts.”
The FBI proposed recommendations made by the Internal Revenue Service (IRS) that taxpayers should establish personal identification numbers (IP PINs) to prevent victimization.
This is a six-digit number assigned to a taxpayer and prevents a third party from filing a return using a Social Security number or an individual taxpayer’s identification number. Registering with the program will generate new IP pins for taxpayers each year.
“IP pins are known only to you and the IRS. They help you verify your identity when filing your electronic or paper tax return. Even if you don’t have a filing requirement, the IP pins still protect your account,” the IRS says.
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There are several ways to get an IP pin, but there is no fastest to request one through an online taxpayer account using the IRS.
The second method is to submit your IP PIN application by submitting form 15227. This method is only available to taxpayers with a total income adjusted for the last requested return with less than $84,000. For married couples who are jointly submitting, the income threshold is $168,000.
“We will make a call using the phone number provided on Form 15227 to verify our identity. Once we verify our identity, we will receive our IP pins through the US postal service, usually within 4-6 weeks. We will then receive our IP pins annually in the mail,” the IRS said.
Taxpayers can also obtain IP pins by meetings in person at their local taxpayer support center. Individuals must have a current government-issued picture and another identification to verify their identity.
Personal information theft crime
Authorities are taking action against identity theft crimes. Last month, a Nigerian man was handed over to the US, claiming that he “using stolen taxpayer information, he filed fraudulent tax returns of more than $1,000, seeking a multi-million dollar tax refund.”
He is accused of being part of a scheme in which he infiltrates the Massachusetts Tax Preparation Services computer network and submits false returns.
In October, a New York man was charged with identity theft and bank fraud in connection with a stolen tax refund check worth $810,000. The accused attempted to steal a refund by impersonating a Connecticut-based company executive.
“The letter will ask you to verify your identity and information on your tax return. You cannot process your tax return or issue a refund until you respond to the letter,” the agency said.
Checks can be made online or over the phone. If the taxpayer fails to submit a suspicious return, the IRS will remove the material from the agency’s records.
Once the identity-related issues are resolved, the IRS marks your account with an identity theft indicator. This helps protect your tax account, the agency says.
“All confirmed tax-related identity theft victims must be placed in the ID Protection PIN program and issue a new six-digit IP pin each year to prevent anyone else from filing a return using their identity and use it in all future submissions,” the IRS said.
