Learn How IP PINs Protect Your Child's Tax Identity

What Is an IP PIN and Why It Matters for Your Child's Tax Identity

An IP PIN is a six-digit number that the Internal Revenue Service (IRS) issues to help protect against tax-related identity theft. The acronym "IP" stands for "Identity Protection." When someone has an IP PIN, they must enter this number when filing their tax return. This extra step creates a barrier that makes it harder for thieves to file fraudulent tax returns using someone else's Social Security number.

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Children are particularly vulnerable to tax identity theft because their Social Security numbers are often unused. A criminal can file a fake tax return in a child's name and claim refunds—sometimes for years before anyone notices. According to the IRS, tax identity theft cases have increased significantly over the past decade, with thousands of fraudulent returns filed annually using children's identities.

The IRS began offering IP PINs as a voluntary program in 2012. Initially, the program was limited to certain states and victims of confirmed identity theft. However, the IRS has expanded the program over time. Starting in 2021, the IRS made IP PINs available to more taxpayers, including those who want protection even if they haven't been victimized yet.

For a parent or guardian, understanding IP PINs is an important part of protecting a child's financial future. A tax identity theft incident can complicate a child's credit history and financial life for years. The IP PIN system adds a layer of security that requires anyone filing a return—including thieves—to know this secret number.

Practical Takeaway: An IP PIN functions as a password for tax filing. Without it, no one can file a federal tax return using that Social Security number, which stops most tax fraud attempts before they start.

How Tax Identity Theft Targets Children and Why It Happens

Tax identity theft involving children typically works in a straightforward way. A criminal obtains a child's Social Security number—sometimes through data breaches, stolen mail, or public records. The thief then files a fraudulent tax return claiming the child as a dependent or filing under the child's name to claim a refund.

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Children make ideal targets for several reasons. First, they typically don't file tax returns themselves, so fraudulent returns may go undetected for months or even years. Second, children have clean credit histories, making their Social Security numbers valuable on the black market. Third, the IRS processes millions of returns each year, and catching fraudulent returns in real time is difficult even with automated systems in place.

The financial impact of tax identity theft can be substantial. When a child's identity is used fraudulently, the IRS may receive conflicting information during future tax years. When the child becomes an adult and tries to file their first legitimate tax return, they may discover that a return has already been filed in their name. This creates a complicated mess that takes time and documentation to untangle.

Data from the Federal Trade Commission (FTC) shows that identity theft complaints involving children have remained consistently high in recent years. In 2021 alone, thousands of reports mentioned children as victims. Many of these cases involved tax-related fraud. The criminals who commit this crime often operate in organized rings and may sell Social Security numbers in bulk on the dark web.

Parents may not realize their child is a victim until years later, sometimes when the child applies for a loan or credit card as a young adult. The discovery often comes as a shock because the parents took reasonable precautions. This underscores why proactive protection through an IP PIN can be valuable.

Practical Takeaway: Because children don't typically file tax returns, criminals can use their Social Security numbers fraudulently for extended periods before detection. An IP PIN blocks this approach by making it impossible to file any return without the secret number.

The Step-by-Step Process for Obtaining an IP PIN for Your Child

The process for obtaining an IP PIN for a child involves contacting the IRS directly. Parents or guardians cannot obtain an IP PIN through a tax software company or third-party service. The IRS maintains strict procedures to ensure that only authorized individuals can request an IP PIN for a minor.

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The primary method is to call the IRS directly at 1-800-908-4490. This phone number connects to the IRS's Identity Protection PIN line. When you call, you'll need to have specific information ready, including your Social Security number, the child's Social Security number, proof of your relationship to the child, and proof of your identity.

During the phone call, an IRS representative will verify your information and ask several questions to confirm you are the legitimate parent or guardian. This verification process typically takes 10 to 15 minutes. The IRS may ask about recent addresses, employment information, or other details from your tax history to verify your identity.

After verification is complete, the IRS representative will issue an IP PIN over the phone and provide a confirmation number. You should write down this number and store it securely. The IRS will also mail a confirmation letter to the address on file, which will arrive within 7 to 10 business days. This letter contains the IP PIN again for your records.

The timing of when you request the IP PIN matters. The IRS typically makes IP PINs available starting in late January each year, with the program running through September. Requesting an IP PIN during this window is recommended, though you can request one at other times as well.

If you prefer not to call, you may also visit a local IRS office in person. However, appointments are typically required, and wait times can be lengthy. Calling is generally faster and more convenient for most people.

Practical Takeaway: Obtain your child's IP PIN by calling the IRS at 1-800-908-4490 with proper identification and relationship documentation ready. The IRS will verify your identity, issue the PIN over the phone, and mail a confirmation letter.

Managing and Maintaining Your Child's IP PIN Over Time

Once you receive an IP PIN for your child, you must manage it carefully and understand how it works across multiple years. A key point to understand is that IP PINs typically last for one calendar year. Each January, you will need to obtain a new IP PIN for the coming year.

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This annual renewal system means that you should plan to call the IRS or visit in person each tax season to get the updated PIN for your child. The IRS sends reminders to taxpayers with IP PINs, and the process becomes routine after the first time. Many parents put a reminder in their calendar in late January to contact the IRS for the new PIN.

You should keep detailed records of every IP PIN issued for your child. Create a secure document or spreadsheet listing the PIN number, the year it covers, the confirmation number the IRS provided, and the date you obtained it. Store this document in a safe place—ideally a locked file cabinet or password-protected digital folder. Do not store IP PINs in easily accessible locations or with other sensitive documents that might be lost or stolen.

If you lose or forget your child's IP PIN, you can call the IRS again to request it. The IRS will re-verify your identity using the same process and provide the PIN again. This is much easier than recovering from actual identity theft, so there's no shame in needing to call back.

As your child grows older and eventually becomes an adult, you will need to transition responsibility for the IP PIN to them. When they turn 18, you should explain the IP PIN system and help them understand how it protects their tax identity. At that point, they may take over management of their own IP PIN, or you may jointly manage it with their permission.

If your child's Social Security number is ever compromised—through a data breach, lost wallet, or other incident—you should obtain an IP PIN immediately and consider placing a fraud alert with credit bureaus as well.

Practical Takeaway: Treat your child's IP PIN like a password. Obtain a new one each year, keep it in a secure location, and plan to transition management to your child when they reach adulthood.

What to Do If Your Child Is a Victim of Tax Identity Theft

Despite preventive measures, tax identity theft can still occur. If you discover that someone has filed a fraudulent tax return using your child's Social Security number, the IRS has procedures to address this situation. The process involves reporting the fraud and working with the IRS to correct the child's tax record

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