The deadline for filing your Federal Tax Return is April 15th. The IRS begins accepting electronic tax return transmissions and processing refunds in late January. Here are some tips to help you prepare for tax time.

Organize Tax Records

Gather all the documents you need to file your tax return as they become available, save a hard copy and a digital copy on your computer.

Each person will receive different tax documents but typically you should receive all tax documents by the end of January. Some documents you may receive are.

  • W-2 for employment earnings
  • 1099-DIV for dividends
  • 1099-INT for interest received
  • 1099-NEC for non-employee compensation
  • 1099-K for electronic business payments received (more below)
  • 1099-R for distributions from 401(k), IRA or pension plans
  • Schedule K-1 for income, losses, tax deductions and credits from a trust, partnership or S corporation
  • Form 1098 for mortgage interest paid
  • Form 5498 for IRA, SEP-IRA and SIMPLE contributions
  • Form 5498-SA for health savings account contributions

The IRS publishes a list of the documents you will need to file your return. https://www.irs.gov/newsroom/tax-filing-step-1-gather-all-year-end-income-documents

Check Your Withholdings

Checking your tax withholding amounts can ensure that you aren’t paying too much or too little in federal income tax. Use the Tax Withholding Estimator to help you determine the right amount of tax to have withheld from your paycheck.

File Early

You can file your taxes as soon as you have all of the documents needed to file and the IRS starts accepting returns. When you file early if you are receiving a refund, you will get it sooner and if there is a problem with your return you will have more time to correct it. According to the IRS. When you choose to E-file your tax return you should receive a refund within 21 days of the filing date, if you file a complete and accurate paper tax return, your refund should be issued in about six to eight weeks from the date the IRS receives your return. You can check your refund status soon after you file using the Where’s My Refund tool https://www.irs.gov/wheres-my-refund or by calling 800-829-1954.

Filing early can also protect you against identity theft. With the numerous data breaches that have occurred your Social Security number may have been compromised, and a thief could use it to try to file a return in your name. Once you have submitted your return it is on record with the IRS and if someone else tries to file a return using your name and Social Security number the Taxpayer Protection Program will identify it as a suspicious tax return and send you a letter to let you know. The letter will ask you to verify your identity and tax return information. Taxpayer Protection Program.

Sign Up for an ID.ME Account

The IRS now offers a sign-in option with ID.me, which offers access to IRS online services with a secure account that protects your privacy. ID.me is an account created, maintained, and secured by a technology provider. With an ID.me account, you can access other government partners who also use this sign-in option. https://www.irs.gov/payments/online-account-for-individuals

Get an Identity Protection PIN

The IRS offers a free security tool, the Identity Protection PIN (IP PIN) this is a six-digit number that is known only to you and the IRS. It adds a layer of security to your account. The PIN is used to verify your identity with the IRS.

Identity theft is ubiquitous, in 2022 there were 5.7 million reports of fraud and identity theft in the United States.  About 1 out of 3 Americans have been victims of identity fraud.

The IRS identified $5.7 billion in tax fraud in 2022, and there were nearly 8 million reports of suspicious tax-season activities.

The Electronic Tax Administration Advisory Committee called the IP PIN, “The number one security tool currently available to taxpayers from the IRS.”

When you file your taxes either electronically or by mail if you have been assigned an IP PIN, you will use that to prove your identity when filing. This prevents fraud by ensuring that someone else does not file a tax return in your name.

How to Request an Identity Protection PIN (IP PIN)

To request an IP PIN you must create an account with the IRS, IRS Create a New Account

Once you have created your account you can use the online IP PIN tool to request your IP PIN. If you are unable to successfully validate your identity through the get an IP PIN tool, you can file an application, although you must meet certain requirements to file. This is how you do it per the IRS.

“If your adjusted gross income on your last filed return is below $73,000 for Individuals or $146,000 for Married Filing Joint and you can’t use the online tool, you have the option to use Form 15227, Application for an Identity Protection Personal Identification NumberPDF. You must have:

  • A valid Social Security number or Individual Taxpayer Identification Number
  • An adjusted gross income on your last filed return is below $73,000 for Individuals or $146,000 for Married Filing Joint.
  • Access to a telephone

We will use the telephone number provided on the Form 15227 to call you and validate your identity. Once we verify your identity, you will receive your IP PIN via the U.S. Postal Service usually within four to six weeks. You will then receive your IP PIN annually through the mail.

If you’re unable to verify your identity online or with the Form 15227 process or you are ineligible to file Form 15227, you may make an appointment for an in-person meeting at a local Taxpayer Assistance Center. Please bring one current government-issued picture identification document and another identification document to prove your identity. Once we verify your identity, you will receive your IP PIN via the U.S. Postal Service usually within three weeks. You will then receive your IP PIN annually through the mail”

What to Know About IP Pins

The IP PIN is good for one year, a new IP PIN will be assigned to you each year.

Once an IP PIN has been assigned you will be required to use it when filing your tax returns.

Keep your IP PIN in a safe location and don’t share it with anyone except a trusted tax professional and the IRS. The IRS will never ask for your IP PIN by phone, email or text, if you receive this type of request, it is a scam. Do not respond.

Once you have been assigned an IP PIN it must be provided when you file your tax return. If you file electronically and don’t provide your IP PIN your return will be rejected, if you file by mail and don’t include your IP PIN the IRS will require additional screening to validate your identity.

How to Use Your IP PIN When Filing

If you file using tax software enter the IP PIN when processing your return, if a tax professional files for you provide them with the IP PIN. The IP PIN will be used only on Forms 1040, 1040-NR, 1040-PR, 1040-SR, and 1040-SS.

The IP PIN must be entered on electronic and paper tax returns.

If You Forget Your IP PIN

If you cannot remember your IP PIN, log back in to the get an IP PIN tool to see your current IP PIN.

If you have trouble viewing your IP PIN online, contact the IRS at 800-908-4490 to have your IP PIN reissued. You will be required to verify your identity. A new IP PIN will be mailed to you within 21 days.

Setting up an IP PIN number with the IRS helps to protect you against fraud and identity theft. It is just one more tool to use to protect yourself.