Recent Tax Updates

Reminders for Upcoming 2015 Filing Season

January 7, 2015

As the January 20 start date for the 2015 filing season draws near, it is important to review the IRS Identity Protection PIN program and the new IRS direct deposit limit.

Identity Protection PIN
For the upcoming filing season the IRS will issue 1.7 million Identity Protection PINs (IP PIN) to individuals who have had an identity theft indicator applied to their IRS tax account.

These are the key items to know about the Identity Protection PIN:

• If a taxpayer received an IP PIN last year they should have received a new 6-digit IP PIN from the IRS in December via IRS notice CP01A.
• If a taxpayer received an IP PIN, the taxpayer and spouse must enter their IP PIN on their 2014 federal return or the IRS will reject the return.
• If the taxpayer loses their IP PIN the original can be retrieved via the online IRS Identity Protection PIN tool on the IRS website.
• The IP PIN received in December 2014 is valid only for use on a taxpayer’s 2014 federal individual return.
• When the taxpayer and/or spouse’s IP PIN is entered in the CrossLink 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 in the signature area. The Spouse’s IP PIN will not print on Form 1040 because the IRS has not included it on the printed Form 1040 for Tax Year 2014.
• The IRS may also invite a taxpayer to get an IP PIN by sending them a CP01F notice because an identity theft indicator has been placed on their account or their account met specific criteria that makes them eligible to receive an IP PIN. The notice explains what the individual needs to do to get an IP PIN.

See the Identity Protection PIN page on the IRS website for more information.

New IRS Direct Deposit Limits
Beginning this filing season, the IRS will be limiting the number of refunds that may be electronically deposited into a single financial account or pre-paid debit card to three (3).

Any subsequent deposits will be automatically converted to a paper refund check and mailed to the taxpayer at the address shown on the federal return.  If this occurs, the taxpayer will be sent a notice informing them of the reason why the refund will not be direct deposited and that they will receive a check in the mail in approximately four weeks.

To read more about this new limitation on direct deposits see the Direct Deposit Limits page on the IRS website.