The fundamental difference between a Self-Select PIN and an IP PIN lies in their purpose, origin, and the level of identity verification they provide for tax filings. The Self-Select PIN serves as an electronic signature for e-filing your tax return, while the IP PIN (Identity Protection PIN) is a security measure assigned by the IRS to protect victims of tax-related identity theft from fraudulent tax filings.
Understanding the Self-Select PIN
The Self-Select PIN is a crucial component for taxpayers who choose to e-file their federal income tax returns. It acts as your digital signature, confirming your identity and authorizing the submission of your tax documents to the IRS.
- What it is: The Self-Select PIN is a random 5-digit number that you enter as your electronic signature when e-filing your return. Taxpayers typically create or choose this PIN themselves.
- Purpose: Its primary function is to verify your identity electronically, allowing you to sign and submit your tax return through e-file software or a tax professional. It confirms that you are the legitimate filer of the return.
- Usage: When e-filing, you will be prompted to enter either your Adjusted Gross Income (AGI) from the previous tax year or a Self-Select PIN to electronically sign your return. This process helps the IRS authenticate the sender.
- Characteristics:
- User-generated: You choose or create this PIN.
- For e-filing: Exclusively used for electronic submissions.
- Single-use: It's typically used for that specific tax year's electronic signature.
Understanding the IP PIN (Identity Protection PIN)
The IP PIN is a more robust security measure designed by the IRS to combat tax-related identity theft. It adds an extra layer of protection, ensuring that even if a fraudster obtains your personal information, they cannot successfully file a fraudulent tax return in your name without this unique PIN.
- What it is: The IP PIN is a 6-digit number that the IRS assigns to victims of tax-related identity theft. It is a unique number that changes each tax filing season.
- Purpose: Its main goal is to protect taxpayers from fraudulent tax returns being filed using their stolen identity. Any tax return submitted with a Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN) associated with an IP PIN will be rejected if the correct IP PIN is not included.
- Assignment: Unlike the Self-Select PIN, the IP PIN is assigned by the IRS. Individuals typically receive an IP PIN if they have been victims of tax-related identity theft or have voluntarily opted into the IP PIN program (though the reference specifically highlights victims of tax-related identity theft).
- Usage: If you have an IP PIN, you must enter it correctly on any federal tax return you file, whether electronically or on paper. Failure to include it, or entering an incorrect one, will lead to your return being rejected.
- Characteristics:
- IRS-assigned: You do not choose this PIN; it is provided by the IRS.
- Mandatory for designated individuals: Required for those assigned one, regardless of filing method.
- Changes annually: A new IP PIN is generated each year.
Key Differences at a Glance
To summarize the distinctions, here's a comparative table:
| Feature | Self-Select PIN | IP PIN (Identity Protection PIN) |
|---|---|---|
| Purpose | Electronic signature for e-filing | Prevents tax-related identity theft |
| Number of Digits | 5-digit number | 6-digit number |
| Origin | Taxpayer-created/chosen | Assigned by the IRS |
| Who Uses It | Most taxpayers who e-file | Victims of tax-related identity theft |
| Mandatory? | Alternative to prior-year AGI for e-filing | Mandatory if assigned to you; return will reject without it |
| Changes? | Generally used for one filing; often new each year based on taxpayer choice | New PIN issued by IRS annually |
Practical Insights
- When you'd use a Self-Select PIN: When you prepare your tax return using tax software (like TurboTax, H&R Block, or tax professional software) and choose to e-file it, you will be prompted to either enter your prior-year Adjusted Gross Income (AGI) or create a Self-Select PIN to electronically sign and submit your return.
- When you'd use an IP PIN: If you have received an IP PIN from the IRS, perhaps because you were a victim of tax identity theft in the past, you must include this 6-digit number on your tax return. If you file your return without it, or with an incorrect one, the IRS system will identify it as potentially fraudulent and reject it, causing significant delays.
In essence, the Self-Select PIN is a general e-filing authorization, while the IP PIN is a specific, high-security safeguard against fraud for those at risk.
