UPDATE 3/8/16: Or don’t get a PIN. According to KrebsOnSecurity.com, and as seen on the IRS site linked below, there have been some major security issues with the Identity Protection PIN system, and for now the service has been suspended. Once again, it took identity thieves around four seconds to figure out how to abuse a feature designed to protect your personal information and prevent tax return fraud.
I’ve written plenty of times about not opening emails that appear to come from the IRS (because of malware and/or phishing), but there is another type of crime that ramps up during tax season: tax identity theft.
Basically, it works like this: an identity thief already has your information, files a fake tax return in your name (from which a large refund will be due), then has the money directly deposited into an account controlled by the thief.
Most people’s first warning sign is when the IRS rejects their actual tax return because, according to their records, they already submitted one.
One step you can take to prevent this form of identity theft is to get an Identity Protection PIN from the IRS. You’ll have to use this PIN any time you file taxes (it’s not the same as your e-file signature PIN). The IRS will send you a new one every December or early January. Once you’re signed up, you’ll have to use a PIN every year to file your taxes, and you can’t opt out.
I can’t find any information about how long it actually takes to get your PIN from the IRS. If you’re ready to file your taxes now, or if April 15th is approaching (depending on when you read this), it might be better to wait until after you’ve filed this year’s return.
For more information, and to request a PIN, visit the official IRS page at https://www.irs.gov/Individuals/Get-An-Identity-Protection-PIN