IRS Provides New Security Measures for Taxpayers

The number of COVID-19 related scams are on the rise. In a move to prevent the misuse of Social Security numbers on fraudulent federal income tax returns, the IRS announced a new program for taxpayers.

Identity Protection PIN Opt-In Program

In mid-January 2021, taxpayers will be able to register with the Identity Protection PIN opt-in program. Taxpayers who can properly verify their identities will have the opportunity to opt-in. The PIN will be valid for one year. Taxpayers who do opt-in will be required to obtain a newly generated IP PIN in 2022.

Registering for Online IRS Services

When you register for an online services account with the IRS, you will be asked a number of questions to verify your identity. The process takes approximately 15 minutes and you are asked to have the following information available:

• Email address
• Social Security Number (SSN) or Individual Tax Identification Number (ITIN)
• Tax filing status and mailing address
• One financial account number linked to your name:
  • Credit card – last 8 digits (no American Express, debit or corporate cards) or
  • Student loan – (Enter the student loan account number provided on your statement. The account number may contain both numbers and letters. Do not include any symbols.) Additionally, we can’t verify student loans issued by Nelnet. or
  • Mortgage or home equity loan or
  • Home equity line of credit (HELOC) or
  • Auto loan
• Mobile phone linked to your name (for faster registration) or ability to receive an activation code by mail

National Tax Security Awareness Week

This first week of December is also National Tax Security Awareness Week. Throughout this week, in conjunction with the partners involved with the Security Summit, the IRS has provided informational videos on their New Security Measures Help Protect Against Tax-Related Identity Theft. To view the videos, please click here. To read the entire news release from the IRS, please click here.

Questions?

Should you have questions about the above topic, or any other topics related to your personal of business situation, please contact us at any time.

DISCLAIMER: The WM Daily Update COVID-19, COVID-19 Business Resources and COVID-19 Client News Alerts and other related communications are intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.