In mid-December 2012, the IRS sent notices to more than 600,000 taxpayers identified as victims (or potential victims) of identity theft. Notice CP01A "We've Assigned You An Identity Protection Personal Identification Number," provides the IP PIN that a victim will need to complete his or her 2012 tax return.

The IP PIN helps the IRS quickly distinguish between the genuine taxpayer and a potential identity thief and helps prevent processing delays for victims’ federal tax returns. IP PINs are valid for the current year’s federal tax return only. The IRS issues a new IP PIN each December when the taxpayer remains at risk for identity theft.

Important changes for this year:

New notices. The CP01A notice replaces the 4869CS letter used last year. 

IP PIN requirement. If a required IP PIN is missing or incorrect on an electronic return, the return will be rejected. Taxpayers can correct or include the IP PIN, request a replacement IP PIN or file a paper return. If an IP PIN is missing or incorrect on a paper return, the return will require a manual review, which will delay any refund to which the taxpayer is entitled. This review is for the protection of the taxpayer who has previously been the victim of identity theft.

Easier replacement IP PIN process. If a taxpayer misplaces the IP PIN, she can quickly get a replacement IP PIN by contacting the IRS by calling the Identity Theft Specialized Unit, or IPSU at 1-800-908-4490, ext. 245, or the IRS Help Desk at 1-800-829-1040 or by visiting a Taxpayer Assistance Center. The replacement IP PIN allows the return to be electronically "accepted" (subject to standard validation tests). However, the return will then require a manual review prior to processing, which may delay any refund to which the taxpayer is entitled. 

What should tax preparers do?

• Ask the taxpayer, as part of the interview process, whether he contacted the IRS regarding identity theft or if the IRS notified them of potential identity theft. If so, ask if he received a notice from the IRS in December containing a six-digit Identity Protection PIN.
  If you cannot locate where to enter the IP PIN in commercial tax software, contact the tax software provider. Due to variances in software programs, IRS assistors cannot help with this matter.

Information for POAs

Since the Identity Protection PIN issued in 2012 is for filing the tax year 2012 income tax return, the IP PIN is considered tax year 2012 information. IRS representatives have limited ability to discuss the IP PIN or any other tax information related to the 2012 tax year unless there is a valid Power of Attorney on file that includes 2012. Disclosure laws restrict the IRS from releasing any information to a third party unless the POA is valid for the year related to that information.

If you have any questions, comments or suggestions regarding the Identity Protection PIN, please submit them to ippin.Questions@irs.gov. Please do not include sensitive or personally identifiable information in your email. Additionally, remember that the IRS does not initiate taxpayer communications through email.