The IRS Issues Last Minute-Warning To Avoid Tax Penalties

  • Richard Marley
  • April 13, 2022
  • 2 minutes read
  • 1946

A new warning has been issued by the IRS with the introduction of an identity protection pin that is aimed at protecting clients from tax fraud

With tax day accelerating around the corner, the Identity Internal Service (IRS), has issued many warnings previously to help taxpayers to assure that files are filled correctly and protect them from tax fines and penalties. 

Just a week before, another warning was issued by the IRS recommending people set up an identity protection pin. While explaining it in their April 11 press release, the six-digit pin will be assigned to each user, individually, whenever they file an electronic or paper return. It will enable them to protect their social security number (SNN) and from the mishandling of their Individual Taxpayer Identification Number (ITIN), which is vulnerable to thefts of filing a tax return while putting the client in danger of fraudulent crimes. 

While enforcing an added layer of security, users will have to go through a complete identification process by visiting to automatically generate a pin. Moreover, taxpayers will acquire updated pins annually, getting notified by the IRS in early January.

For victims of tax-related identity theft, an automatically assigned IP pin will be sent outlining the victim’s incident through a notification. The users will receive a letter from the IRS if any suspicious return is detected, as said by the agency. Without getting a response from the user, the agency won’t proceed with the false return.

The IRS further recommends double-checking all the numbers to confirm the duplication of SNN before jumping to conclusions. Getting a tax transcript email that the user has no knowledge about can hint at signs of fraud. In addition to that, if the IRS sends a notice about an unknown employee transaction, this can also mean trouble is knocking at the door.

Proactive steps can be taken for dealing with these frauds by submitting a Form 14039, also referred to as Identity Theft Affidavit. The IRS ensure to help the victims of tax fraud to verify their identity and register as legitimate taxpayer while getting rid of the fraudulent act. 

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