Identity Theft has become a national concern over the past decade. To combat the problem of those who e-file fictious tax returns and collect fradulent refunds, the IRS created the Identity Protection Personal Identifcation Number, (IP PIN). Initially, the only way to obtain an IP PIN was by being a victim of ID theft.
The Taxpayer First Act, requires the IRS to allow ant taxpayer to opt in and receive the six digit IP PIN. To request an opt-in IP PIN, a taxpayer must first register through IRS Secure Access and establish their own personal IRS account, which can be used to access IRS transcripts online, make payments and see if forms have been received. The IRS requires that for online registration the taxpayer have a cell phone registered in their name in order to register for this access for security reasons. The taxpayer also needs an email address and a financial account like a VISA, Mastercard or student loan. The verfication service draws information from the taxpayer's Experian credit bureau file.
If the taxpayer is not successful creating an online account they must use form 15227, Application for an Identity Protection Personal Indentification Number. Form 15227 is available for taxpayers whe made less than $72,000. If a taxpayer makes more than $72,000 and can't verify their identity online, they must make an in-person appointment at an IRS Taxpayer Assistance Center.
Source: National Association of Tax Professionals, Tax Pro Monthly January, 2021