IRS Identity Theft Prevention Tool hacked

The Identity Protection PIN tool on the IRS.gov site has been temporarily suspended—because it was recently hacked into. The tool provides retrieval of forgotten or lost IP PINs to users who want an extra layer of protection against identity theft.

But some users who received the IP PINs recently via the online tool learned that a thief had used their IP PIN to file tax returns in their name.

So now, for the moment, you cannot use the IRS's online function to retrieve your IP PIN; meanwhile, the IRS is investigating the hack.

The online tool attracts taxpayers who lost or forgot the six-digit IP PIN they were issued via snail mail. Despite the suspension of the tool, taxpayers are encouraged to file their returns without any qualms. The IP PINs purpose is to add additional protection to the user, but is not required to process a tax return.

Lesson learned: If you ever receive an IP PIN in the future…memorize it or write it down in hardcopy and keep in a safe place.

Tips from the IRS

• There will always be someone who misplaces or accidentally throws out the letter containing the IP PIN, or who intentionally discards the document but then can't remember the number and never wrote it down. They should call the IRS in the wake of this suspension.
• Over the phone, they will need to verify their identity, after which they will receive a letter with the IP PIN.
• If since the first of this year the taxpayer has moved, they will need to file a paper return, and this will take longer to process if it doesn't contain an IP PIN.
• The IP PIN is given out to those at risk or who feel at risk for tax identity theft. But again, it's not necessary to use it if it's been lost or forgotten. But for those who managed to retrieve their number, they should include it on their tax return.