Income Tax Service
5200 W Market St
Greensboro, NC 27409
As the January 19 start date for the 2016 filing season draws near, here are some of the new actions that States are instituting to help fight tax identity theft and refund fraud, as well as an update on the IRS Identity Protection PIN.
Request by States for Driver's License information for the Upcoming Filing Season
As part of their continuing effort to combat tax identity theft and fraud, many State Revenue Departments will be requesting additional information be included with the tax return to help them confirm that the return they are receiving is truly the taxpayer's. Providing the requested information will help ensure that the taxpayer's tax refund will go to them and not to an identity thief.
One piece of information that nearly all States will be requesting is information from the taxpayer's and spouse's driver's license or state-issued identification card. Although a return will not be rejected if the requested information from the driver's license or state identification card is not present in the taxpayer's return, not providing this information may delay the processing of the return and cause a delay in receiving any refund associated with the return.
Other State Actions to help Prevent Identity Theft and Tax Fraud
Below are some examples of new processes put in place by Illinois, Alabama, and Virginia that begin in the 2016 filing season:
IRS Identity Protection PIN (IP PIN)
Beginning with the 2016 filing season, the IRS requires that an identity protection PIN (IP PIN) be entered on the 2015 tax return if an individual that is claimed as a dependent on a tax return has received an IP PIN from the IRS. Otherwise, the IRS will reject the tax return.
As a reminder, the IRS issues IP PINs to individuals who have had an identity theft indicator applied to their IRS tax account. These individuals will receive the IP PIN via IRS notice CPO1A this month (January).
Important Note : Due to an error, the IRS is emphasizing that all IP PINs that are contained in the CP01A notices that an individual receives this month (January) are for filing the 2015 tax return even though the notices incorrectly state they are for filing the 2014 tax return.
Other things to know about the Identity Protection PIN:
See the Identity Protection PIN page and the IP PIN FAQ page on the IRS website for more information.