Acquiring an IP PIN can help taxpayers prevent such incidents, the agency suggests.
The FBI issued an alert Wednesday, warning Americans about criminals stealing the identities of taxpayers to file fake returns and claim refunds.
“The FBI’s Internet Crime Complaint Center (IC3) has received over 1,000 complaints about identity theft in connection with tax returns within the past year representing a 26 percent increase from the previous year,” the agency said in an April 2 statement.
“Stolen refunds are often redirected by criminal actors to accounts or addresses they control, including bank accounts, prepaid debit cards, mail drops, and/or third-party accounts.”
To prevent getting victimized, the FBI suggested recommendations made by the Internal Revenue Service (IRS) that taxpayers set up an Identity Protection Personal Identification Number (IP PIN).
This is a 6-digit number assigned to a taxpayer that prevents a third party from filing returns using their social security number or individual taxpayer identification number. Once enrolled in the program, a new IP PIN is generated for taxpayers every year.
“The IP PIN is known only to you and the IRS. It helps us verify your identity when you file your electronic or paper tax return. Even though you may not have a filing requirement, an IP PIN still protects your account,” the IRS says.
There are several ways to obtain an IP PIN, with the fastest being to request one through the taxpayer’s online account with the IRS.
A second way is to file an IP PIN application by submitting Form 15227. This method is only available for taxpayers whose adjusted gross income on the last filed return is less than $84,000. For married couples filing jointly, the income threshold is $168,000.
“We will use the telephone number provided on the Form 15227 to call you and validate your identity. Once we verify your identity, you will receive your IP PIN via the U.S. Postal Service usually within four to six weeks. You will then receive your IP PIN annually through the mail,” the IRS said.
Taxpayers can also get an IP PIN by making in-person meetings at a local Taxpayer Assistance Center. The individual must bring a current government-issued picture as well as another identification to verify their identity.
The FBI asked taxpayers who suspect they have been victimized in an identity theft incident to report the matter to the agency’s IC3 center.
