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What is an Identity Protection PIN (IP PIN)?

IP PIN

Fraud can happen to anyone.

If your social security number was used fraudulently in the past, the IRS assigns a six-digit PIN to you; the Identity Protection PIN (IP PIN).

Eligibility

In order to receive an IP PIN, you will need to meet the following:

  • You received a CP01A notice which will have it located at the bottom of the first column
  • The IRS sent you a letter inviting you to opt-in for the IP PIN
  • You were a resident of Florida, Georgia or the District of Columbia, Michigan, California, Maryland, Nevada, Delaware, Illinois or Rhode Island last year

Note: Taxpayers who experience identity theft after they receive the CP01A notice will need to file the Identity Theft Affidavit. 

The steps on getting an IP PIN

Continue reading “What is an Identity Protection PIN (IP PIN)?”

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Delay in State Tax Refunds for 2016

Identity theft is real, and it is REALLY affecting when we get our state refunds.

Remember being in elementary school, when your teacher would tell the class that if one more student misbehaved, then the entire class would be forced to sit inside for recess that day? There was always that one kid who would ruin it for everyone.

That is similar to what’s going on with identity theft affecting state refunds this year. State revenue departments decided that there were too many cases of fraudulent activity and that they needed to do something. This means that refunds are being delayed a bit in order to double check certain taxpayer information.

Let’s take a look at the states that took a little extra precaution this 2016 tax season.

Illinois and South Carolina

These guys put provisions into play from the very beginning of the season. If you filed your state return in January or February, then you wouldn’t have seen your refund until at least mid-March. On top of that, if you filed your return after March 1st, 2016, then your refund was sent approximately three weeks from the date it was accepted.  

Hawaii

Taxpayers could be waiting for their state tax refund anywhere from four to sixteen weeks after being accepted. Good thing that Maui ranks as the #1 vacation spot in the U.S.! You won’t need to travel too far to relax and forget about the lack of refund money you’re waiting on.

Idaho

Identity theft in the Great Potato State has increased by nearly 64% since 2014! Extra safety measures means taxpayers will be waiting about seven weeks for their state refund from the time it is accepted. The ID Department of Revenue recommends responding ASAP to any letters you receive from the Tax Commission to speed up the processing time. Continue reading “Delay in State Tax Refunds for 2016”

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How to Prevent Tax Identity Theft

Last year tax identity theft affected 1.1 million taxpayers. Use these tips to prevent someone from stealing your identity and filing a fraudulent return

Every year millions of taxpayers look forward to tax season as a nice fat tax refund is waiting to enter their bank accounts.

But for an increasingly large group of tax filers, tax season can be a scary time. Every year, more and more people become the victims of tax identity theft – their names and Social Security numbers were stolen and fraudulent returns are filed under their names.

Not only do criminals now possess these unfortunate filers’ personal information – with which they can do any number of dastardly things – but these people also have their tax returns rejected by the IRS because every Social Security number can only be used once. They then have to print out their return out, fill out a lot of extra paperwork, and mail it all to the IRS, which slows the process down considerably. Many have to wait months, even upwards of a year, before they get their refunds.

In 2008, there were 51,700 cases of identity theft-related tax fraud. In 2011, that number was over 1.1 million.

So even if you’ve never had your identity stolen, you still need to be vigilant about taking preventive measures. Don’t think it can’t happen to you. Following these steps will save you a lot of hassle and heartache: Continue reading “How to Prevent Tax Identity Theft”