Imagine discovering that a criminal has already filed a tax return in your name and pocketed your refund. That’s the annual nightmare for a growing number of American taxpayers — and untangling it can be agonizing.
According to the latest report from the Treasury Inspector General for Tax Administration (TIGTA), tax-related identity theft cases take an average of about two years to close. Most of that time is spent in administrative purgatory waiting for help to become available.
Staffing shortages further compound the situation. Last year, the IRS lost nearly 300 trained identity theft assistors to the Deferred Resignation Program alone, part of broader workforce cuts by the Trump administration that shrank the federal tax agency by nearly 30,000 workers .
With fewer agents available to help untangle fraudulent filings, taking proactive steps is essential. The IRS’ most potent defense tool — the Identity Protection PIN ( IP PIN ) — can block scammers, but the online portal used to claim one is closing soon. Here’s more of what to know.
Identity theft inflicts ‘financial hardship’ on taxpayers
Tax identity theft generally operates on a simple premise: whoever files first gets the refund. And criminals don’t wait for the spring filing rush.
As yearly IRS Security Summit guidance points out, fraudsters spend late fall preparing schemes to submit bogus returns as soon as tax season opens in January.
Scammers snatch names, birth dates, and Social Security numbers leaked through corporate data breaches or dark-web databases.
From there, they fabricate Form W-2 or 1099 wage figures, pad faux tax withholdings, and claim refundable credits to generate an inflated refund routed to an untraceable account or prepaid debit card.
Most tax identity theft victims don’t realize their information has been used until they try to file in the spring, only to have the IRS reject their return because someone has already filed under their Social Security number.
In a congressional report , National Taxpayer Advocate Erin M. Collins called these fraud cases and subsequent delayed tax refunds “financial hardships,” adding that the delay is “frustrating, burdensome, difficult to navigate, and time-consuming.”
That administrative ordeal costs everyone involved. Over the past two years, the IRS paid taxpayers more than $124.2 million in refund interest solely because of resolution delays, according to TIGTA.
While the agency protected $7 billion in fraudulent refunds across 2024 and 2025, taxpayers have one preventative measure to stop fraudsters in their tracks: the IRS IP PIN. It’s a six-digit code that prevents anyone from e-filing without it.
But the online ” Get an IP PIN ” tool goes offline each year for scheduled maintenance — meaning taxpayers who miss the impending deadline leave their Social Security numbers unprotected when the tax filing gates open.
So what’s closing down?
Starting in mid-November, the IRS will take its online “Get an IP PIN” tool offline through mid-January for annual system maintenance.
An IRS IP PIN is a six-digit number assigned to eligible taxpayers to prevent fraudsters from using their Social Security numbers on fraudulent federal income tax returns.
Once the IRS attaches an IP PIN to an SSN, the electronic filing system automatically rejects any return that doesn’t include the same six-digit code — even if the return is submitted earlier. Once enrolled, a taxpayer gets a new regenerated IP PIN every January.
However, there’s one important caveat: you have to sign up.
If you haven’t signed up for an IP PIN before, you won’t automatically get one in the new year.
This gives cybercriminals two months to find your stolen personal information and file a faux return the moment the IRS starts accepting submissions for tax season.
As a result, the IRS has repeatedly warned that obtaining an IP PIN is the single most effective way for filers to defend themselves against identity theft.
“By safeguarding their online account credentials and obtaining an IP PIN, taxpayers can help stop tax-related identity theft, file their tax return with greater confidence, and know they have done what they can to protect themselves from bad actors,” said IRS Chief Executive Officer Frank J. Bisignano in a recent press release .
Here’s the good news: securing an IRS IP PIN has never been easier. When the PIN system first launched, taxpayers could only secure one if they had already been a victim of tax fraud or met certain geographic criteria.
Since the program has now expanded to all taxpayers, approximately 51 million individuals use an IRS Individual Online Account to manage their taxes and secure their filings. Through this portal, verified users can check account balances, review past records, and voluntarily enroll in the IP PIN program — even if they’re not required to file a federal return this year.
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Action steps to take now
If taxpayers want to sign up for an IP PIN, there’s still time, but not much, with the mid-November maintenance shutdown approaching. Here are the key steps to follow before the IRS portal goes dark.
Create and verify your IRS Individual Online Account. Go to IRS.gov and set up your account using ID.me to verify your identity. If you already have an account, log in now to make sure your credentials and multi-factor authentication are functioning.
Opt into the “Get an IP PIN” tool. Navigate to the profile or security settings within your online account and request your six-digit PIN before the mid-November freeze.
Guard your January code. Once the IRS issues your new annual PIN in early January, treat it like a bank PIN or password. Only share it with your trusted, verified tax preparer when you are ready to file (if applicable).
Protect dependents and non-filers. Children and older dependents are frequent targets for fraudsters looking for unused Social Security numbers. Ask your adult dependents to log into their own IRS accounts to opt in.
For minor children, you can request an IP PIN by mailing Form 15227 if your adjusted gross income ( AGI ) is below $84,000 for single filers or $168,000 for married couples. Anyone who cannot verify online and/or exceeds these income limits must schedule an in-person verification appointment at a local Taxpayer Assistance Center ( TAC ).
As the IRS braces for another high-volume filing season with overwhelmed backlogs, taxpayers can ensure as high a level of defense as possible. Using just a few minutes now to secure an IP PIN before the portal shutdown deadline may be the single most effective barrier between your tax refund and the black market.
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