IP Pin reject

[Margaret CPA in OH]

Client has IP Pin issued March 2021 but e-file was rejected as not matching the data base.  She sent a copy of the notice and it is correct.  I am trying to resubmit now but am not optimistic.  Phone call in the future?  Meaning now I have to get POA?  Ugh!

[jklcpa]

7 minutes ago, Margaret CPA in OH said:

Client has IP Pin issued March 2021

Maybe a stupid question, but is that the IP PIN for the 2021 tax year, or for 2020?

Client could try to retrieve her 2021 IP PIN from the IRS tool to verify it and to make sure it is the one for the year you are trying to file.

[Margaret CPA in OH]

Hmm, not a stupid question, just stupid me!  I forgot that she had one for 2020 and, since this was dated March 13, 2021, and I filed March 23, that's it!  I will try without a PIN and see what happens.  If rejected again, I will ask if she has another for 2021.  She included it with her 2021 documents and I obviously didn't notice the date.  I have just one other client with a PIN but this is new for this client.  If no PIN gets rejected, I will let her know to try to retrieve the one for 2021, if needed.  She is a physician so busy but responsive.

Thanks, Judy!

[Lee B]

"Can I use my IP pin from last year?

No. The IRS will send you a CP01A notice with your new IP PIN by early January of 2022. That's the one you'll need to file your 2021 return.Jan 4, 2022."

[TexTaxToo]

IP PINs expire each year.  You must use the new IP PIN even if filing a prior year return.

[Abby Normal]

48 minutes ago, Margaret CPA in OH said:

I will try without a PIN and see what happens. 

IRS IP PINs are like herpes. Once you have one, you will always have one. And as others have already pointed out, you get a new IP PIN every year and it's for ALL returns filed during that year, regardless of which return you are filing.

[TexTaxToo]

5 hours ago, Abby Normal said:

Once you have one, you will always have one.

When the IRS announced that anyone could now get an IP PIN, they said:

• The IRS plans to offer an opt out feature to the IP PIN program in 2022.

But I haven't seen any announcement of how to do that, yet.

[Pacun]

On 5/20/2022 at 10:30 AM, jklcpa said:

Client could try to retrieve her 2021 IP PIN from the IRS tool to verify it and to make sure it is the one for the year you are trying to file.

What information is required to retrieve an IP PIN if client lost their letter?  I think they need to create and account and that takes time, correct?

I do need to retrieve one because I hate to mail 1040s these days/years.

 

[jklcpa]

17 minutes ago, Pacun said:

What information is required to retrieve an IP PIN if client lost their letter?  I think they need to create and account and that takes time, correct?

I do need to retrieve one because I hate to mail 1040s these days/years.

 

Yes, the client must have an account to retrieve online. IRS also has a # to call for assistance, but I'm not sure of the wait times or availability at this point, and it's been a year or two that one of my clients had lost their pin, iirc actually never received it because client failed to notify IRS of an address change.

More info here: https://www.irs.gov/identity-theft-fraud-scams/retrieve-your-ip-pin

[Sara EA]

I have a client who lives in another country whose return was rejected because of lack of IP PIN.  He never knew he had one (thinks his mom applied for everyone in the family).  I sent him the link for the "retrieve your IP PIN" at the IRS website, and within 15 minutes he had it.  He's computer literate.

[Pacun]

I had two clients that got it in minutes. I am not sure if they had an account already or if there is an easy way of getting it.  Both of my clients used a computer too.

[Margaret CPA in OH]

This client originally got the one for 2020 online so I assume she is capable of getting the new one as well.  I referred her to the link provided above, reminded her to look at the document she sent for 2020 and url to refresh her memory but haven't yet received the reply.  I'm sure she is capable, just waiting.

Then again, she sent a K-1 to a partnership for an LLC she and husband set up because friends advised them to do so.  The K-1 indicated that the LLC was a disregarded entity but the IRS EIN generated indicated a 1065 was required to be filed.  Of course she had no idea why I told her that she had to get K-1's for herself and husband, explained that a 1065 was needed but I couldn't prepare it as I had zero information.  I said they may well have a penalty assessed as it was long after due date for filing but first time abatement might work.  I'm not worried about affordability, just wondering how they could be so easily taken in by 'friends' to invest in an energy p'ship without getting more information.  Maybe she will ask next time.  Maybe not.  Most of my clients do ask before playing with financial situations but sometimes after the fact despite my suggestion to ask first.  I guess they prefer the 'better to beg forgiveness (maybe owe tax) than ask permission (or advice as to tax ramifications) method.'

[TexTaxToo]

On 5/20/2022 at 3:45 PM, TexTaxToo said:

When the IRS announced that anyone could now get an IP PIN, they said:

• The IRS plans to offer an opt out feature to the IP PIN program in 2022.

But I haven't seen any announcement of how to do that, yet.

Better late than never?  The FAQ on IP PINs changed recently:

https://www.irs.gov/identity-theft-fraud-scams/frequently-asked-questions-about-the-identity-protection-personal-identification-number-ip-pin#q22

Quote

Q22: Can I opt-out of the IP PIN program? (updated May 16, 2024)

A22: Yes, if you voluntarily joined the IP PIN program and have not been a victim of tax-related identity theft, then you may opt-out of the IP PIN program. To find out if you are eligible to opt-out, please log into your online account.

 

[BrewOne]

I just sent notice to all my clients who don't have IP PIN's (and who I thought could navigate the ID.me process) encouraging them to sign up.  Was a recent statement from the Taxpayer's Advocate Office that it's taking around 20 months to get a refund if someone else files under your SSN.  The IRS has gotten pretty good at catching fraudulent returns, but the actual taxpayer's return still can't be e-filed.

I gave my clients a heads up about the calendar nature of the IP PIN's--those who sign up now will get a PIN for 2024 that won't be valid for their 2024 return--now that's not confusing, right?

[Randall]

I found out this year that a new PIN is issued every year.  I used previous PIN for a client and efile was rejected.  As I contacted the client, I reviewed their current year info.  I saw that the spouse had written a different PIN down by her signature on the questionnarie form.  I used that PIN and return went thru.  I had previously been under the impression that the PIN issued was good on going.  Not so.

[Lion EA]

Yep, new IPIN in the mail in January every year to use for the new calendar year for any and all returns e-filed/mailed during that calendar year only, including prior year returns and amendments. Not at all easy to explain to clients!

[WITAXLADY]

Thank you - good info about filing with the current year's PIN.

I will try that with the that have been rejected!

Thx D/WI