Protecting Your Identity Has Never Been More Important

When it comes to your finances, few things are more devastating than discovering that someone has stolen your identity. Unfortunately, tax fraud and financial scams are on the rise, which is why the IRS has rolled out a powerful—yet often overlooked—tool: the Identity Protection Personal Identification Number, or IP PIN.

This six-digit code provides an added layer of security, ensuring that only you can file a tax return under your Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN).

My Own Experience With Identity Theft

This isn’t just theory for me—I’ve lived it.

Years ago, a fraudster attempted to use my identity to buy an engagement ring on credit. On paper, it looked legitimate. My name, my information—all of it lined up.

Fortunately, the credit auditor reviewing the application noticed something odd: I was already married. That detail caused her to call me directly to verify the purchase.

That one phone call exposed the fraud. But it also opened my eyes to how vulnerable we all are. It forced me to take every step available to lock down my identity—including putting credit freezes in place and, importantly, securing an IP PIN through the IRS.

How the IP PIN Works

The IP PIN is a six-digit code issued by the IRS. Once you have it, you must use it to file your federal tax return. If a criminal tries to file a fake return in your name without the code, the IRS will reject it.

Here’s the good news:

• Who can get one? Anyone with an SSN or ITIN, including people living abroad, can apply.
• How long does it last? Each code is valid for one year. After that, the IRS automatically issues a new one.
• How do you get it? The easiest way is through your online IRS account at irs.gov.

And remember: the IRS will never call, email, or text you to ask for your IP PIN. If you get such a request, it’s a scam.

The Trade-Off: Convenience vs. Security

Let’s be honest—security always comes with a bit of inconvenience. Using an IP PIN means keeping track of a new number each year, entering it correctly when filing, and occasionally dealing with delays if the IRS system hiccups.

But here’s the perspective I’ve gained: that little inconvenience is nothing compared to the nightmare of full-blown identity theft.

If you’ve ever had to clean up fraudulent accounts, dispute charges, or prove to institutions that you are really you, then you know how time-consuming, stressful, and emotionally draining it can be. I’d rather deal with typing in six extra digits than live through that again.

The Bottom Line

Identity theft isn’t just a possibility—it’s a reality. I’ve been on the receiving end, and I can tell you: it’s not something you want to experience firsthand.

The IRS IP PIN is one of the simplest and most effective ways to keep fraudsters from filing a tax return in your name. Yes, it adds a small layer of inconvenience. But in exchange, you gain peace of mind knowing you’ve put one more wall between yourself and the criminals who would love to profit off your identity.

When it comes to your financial security—and your future retirement—an ounce of prevention is worth far more than a pound of cure.