A Simple Way to Protect Your Tax Refund This Year

A Simple Way to Protect Your Tax Refund This Year

By: Quinn B. Christensen, SVP – Chief Information Officer

Fraud prevention doesn’t have to be overwhelming; it often begins with a few practical habits that make a real difference.  Tax season is no different.

Unfortunately, criminals know that this time of year can be the “perfect storm” for identity theft. If someone gets a hold of your personal information, they may try to file a tax return in your name — and claim your refund before you ever get the chance.

The good news? The IRS offers a free tool that can make a huge difference in preventing tax fraud — and it only takes a few minutes to set up.

Meet your IRS IP PIN (it’s like a lock on your tax return)

The IRS Identity Protection PIN, also known as an IP PIN, is a special six-digit number that helps prove you are really you when filing your federal tax return.

This two-factor authentication process acts like a “second key” the IRS asks for. Even if a scammer had your Social Security number, they would have a much harder time filing a fake return without that extra PIN.

For many people, getting an IP PIN is one of the easiest fraud-prevention steps they can take — because it helps stop problems before they start.

Why an IP PIN is a smart move

An IRS IP PIN can help you:
•    Reduce the risk of tax-related identity theft
•    Keep criminals from filing a return in your name
•    Protect your refund from being stolen
•    Add an extra layer of security every year (your PIN changes annually)

It’s one of those tools that feels “small,” but it can save a lot of stress if your information ever winds up in the wrong hands.

Getting started: an IRS account makes it easy

In order to get an IP PIN, you’ll first create an IRS Online Account. This account also lets you securely view things like tax records, payment history, and other helpful IRS information.

To keep everything safe, the IRS uses a trusted identity verification service called ID.me. During setup, you may be asked to confirm your identity using a photo ID (like a driver’s license or passport) and a quick selfie/video verification step. It sounds fancy, but it’s really just a security measure to make sure nobody else is pretending to be you.

Once your IRS account is set up, you can request your IP PIN right within the account — and just like that, you’ve added an extra layer of protection to your tax return.

A quick note before you file

If you choose to use an IP PIN, you’ll want to keep it in a safe place. (Your password manager, a secure note app, or your tax folder works great.) When it’s time to file, you’ll enter the PIN into your tax software, or provide it to your tax preparer.

And if you ever misplace it? No need to worry, you can retrieve it again through your IRS Online Account.

A little prevention goes a long way

Tax scams are unfortunately common, but protecting yourself doesn’t have to be complicated. Creating an IRS account and choosing an IP PIN is a simple step that can help prevent fraud, reduce stress, and keep your refund where it belongs: in your pocket.

If you ever have questions about fraud prevention, identity theft, or ways to keep your finances secure, feel free to contact your trusted banker at The Peoples Community Bank – we’re always happy to help!