Washington News

The Internal Revenue Service (IRS) and Security Summit partners published a guide this week on identity theft protection. The IRS and Security Summit recommends multifactor authentication and Identity Protection PINs. The IRS offers taxpayers the ability to create an IRS Online Account and a Tax Pro account for tax professionals.

1. Multifactor Authentication — Your primary protection involves multifactor authentication for accessing an account. The Federal Trade Commission (FTC) requires tax professionals to use multifactor authentication to protect their clients. The multifactor authentication may be a code number sent to your cell phone or a similar authentication factor sent to your email address. In addition to multifactor authentication, you should always protect your username and password to all accounts. Multifactor authentication enhances security, as it reduces the ability of identity thieves to use phishing or social engineering to steal passwords or personal information. Many organizations now offer an option for you to select a code sent to your phone or an email address. This places the user in control of multifactor authentication.
2. Identity Protection (IP) PIN — An IP PIN is a six-digit number. For most taxpayers, it is voluntary but strongly recommended. You should protect your IP PIN and reveal it only to a trusted tax preparer. The IRS reminds taxpayers that they will not call, email or text a request an IP PIN. If you receive a call, email or text request for your IP PIN, it is likely a fraudulent request. The IP PIN is valid for one calendar year. You may obtain it on the IRS website by visiting the "Get an IP PIN” webpage. If you are a victim of identity theft, the IRS will automatically issue an IP PIN to you each year.
3. IRS Online Account — The IRS encourages taxpayers to establish an IRS Online Account. Your online account provides access to your tax information. It also reduces the ability of fraudsters to create a false account and claim your identity. Your account also enables you to share information with your trusted tax professional.
4. Tax Professional Account — The IRS allows tax professionals to create an account to manage their client authorizations. With the account and permission from the client, the tax professional may send requests to a taxpayer's IRS Online Account. It also enables the tax preparer to obtain authorized information from clients.

The Security Summit conducts a summer series annually to educate taxpayers and tax professionals. Nationwide Tax Forums for tax professionals will be held in five cities this year. Information on the Tax Forums is available on IRS.gov.