Recent Tax Updates

Changes to the IRS Identity Protection PIN Program for the 2014 Filing Season

January 16, 2014

The IRS is making the following changes to their Identity Protection PIN program for the 2014 Filing Season:

• If the spouse receives an Identity Protection PIN (IP PIN), they must include it on their electronically filed federal return. If it is not included or is entered incorrectly, the return will not be accepted by the IRS.

  The taxpayer will continue to also be required to include their IP PIN on their federal return as they have since this IRS program began two years ago.

• If the taxpayer and/or spouse lose or misplace their IP PIN they will need to get their original IP PIN via the new online IRS Identity Protection PIN system on the IRS website.

  In order to obtain their original IP PIN the taxpayer and/or spouse will need to go through a registration process to validate their identity. This process is to ensure that the IP PIN is being given to the correct taxpayer and to protect the taxpayer's personal and tax information.

  For taxpayers who are unable to use the online tool, or do not want to use it, they can obtain a replacement IP PIN by calling the IRS at 1-800-908-4490, extension 245. If a taxpayer receives a replacement IP PIN, the processing of their return and the issuance of their refund will be delayed.

Other things to know about the IRS Identity Protection PIN program are:

• The IRS will be issuing 1.2 million Identity Protection PINs for the upcoming season. IP PINs are issued to all taxpayers that have had an identity theft indicator applied to their IRS tax account.
• Affected taxpayers should have received IRS Notice CP01A from the IRS in December 2013. This notice includes their 6-digit IP PIN and information on the use of it.
• The Identity Protection PIN received by the taxpayer and or spouse in December 2013 is only valid for use on their 2013 federal individual return. Those who received an IP PIN for 2013 will receive a new IP PIN each year for as long as their IRS account has an identity theft indicator associated with it.
• When the taxpayer and/or spouse IP PIN is entered in the CrossLink professional tax software program, they will be transmitted to the IRS as part of Form 1040. The taxpayer's IP PIN will print on Form 1040 in the area designated for this purpose in the signature area. The spouse's IP PIN will not print on the Form 1040 because the IRS did not add it to the printed Form 1040 for tax year 2013.

For more information see the following:

• Understanding Your CPO1A Notice for more information about the IRS Identity Protection PIN and a copy of what this notice looks like and tells the taxpayer.
• IRS Identity Protection PIN Frequently Asked Questions
• Lost or Misplaced IP PINs page on the IRS website for further information on what to do if the taxpayer loses or misplaces their IP PIN.