January 14, 2016
As the January 19 start date for the 2016 filing season draws near, here are some of the new actions that States are instituting to help fight tax identity theft and refund fraud, as well as an update on the IRS Identity Protection PIN.
Request by States for Driver’s License for the Upcoming Filing Season
As part of their continuing effort to combat tax identity theft and fraud, States will be requesting additional information be included with the tax return to help them confirm that the return they are receiving is truly the taxpayer’s. Providing the requested information will help ensure that the taxpayer’s tax refund will go to them and not to an identity thief.
One piece of information that nearly all States will be requesting is information from the taxpayer’s and spouse’s driver’s license or state-issued identification card. Although a return will not be rejected if the requested information from the driver’s license or state identification card is not present in the taxpayer’s return, not providing this information may delay the processing of the return and cause a delay in receiving any refund associated with the return.
Other State Actions to help Prevent Identity Theft and Tax Fraud
Below are some examples of new processes put in place by Illinois, Alabama, and Virginia that begin in the 2016 filing season:
See the Illinois Refund Alert on the Illinois Revenue website for more information.
See the Tax Related Identity Theft Prevention page on the Virginia Department of Taxation website for more information.
IRS Identity Protection PIN (IP PIN)
Beginning with the 2016 filing season, the IRS requires that an identity protection PIN (IP PIN) be entered on the 2015 tax return if an individual that is claimed as a dependent on a tax return has received an IP PIN from the IRS. Otherwise, the IRS will reject the tax return.
As a reminder, the IRS issues IP PINs to individuals who have had an identity theft indicator applied to their IRS tax account. These individuals will receive the IP PIN via IRS notice CPO1A this month (January).
Important Note: Due to an error, the IRS is emphasizing that all IP PINs that are contained in the CP01A notices that an individual receives this month (January) are for filing the 2015 tax return even though the notices incorrectly state they are for filing the 2014 tax return.
Other things to know about the Identity Protection PIN:
2018 Depreciation Changes
October 18, 2018
2018 Tax Law Changes that are Directly Reported on Form 1040
October 3, 2018
IRS Tax Transcripts Changes
September 27, 2018
Revised 2018 Schedule A due to Tax Cuts and Jobs Act Changes to Itemized Deductions
August 29, 2018
2018 Expansion of Preparer Due Diligence Requirements
August 8, 2018
IRS Accepting Renewal Applications for ITINs Expiring at End of 2018
July 25, 2018