2023: Year of the Identity Protection Pin

The last few months have seen multiple threats to taxpayer’s personal data. First, Congress announced that H&R Block, TaxAct and TaxSlayer shared sensitive taxpayer data. Then, a report identified key security weaknesses that were not being addressed by the IRS.

More recently, there is troubling news for gamblers. Multiple casinos on the Las Vegas strip, including Caesars and MGM, were hacked (and still may be as of today). The severity of the hacks is still unknown, but it has been confirmed that the Caesars Reward database was copied and transferred to an unknown source. This includes the driver license details, and in some cases Social Security Numbers, of many of its reward members.

While it hasn’t made clear exactly where this information may have been shared, there is a possibility that members of the Caesars Rewards database had their Social Security Numbers compromised. This is by no means definitive, but some portion of user’s personal information was acquired during these hacks. 

Since most of us in the gambling space have rewards cards with either Caesars or MGM, it can’t hurt to take a proactive approach. Whether you believe you were a victim of identity theft, or not, the IRS gives all taxpayers an option to add a layer of protection when filing their tax return. Any taxpayer can obtain an Identity Protection PIN (IP PIN), which is a six digit number that must be submitted with your tax return. Your IP PIN changes each year, so it actively protects your tax filing from year to year. 

If you already have an IRS account, it takes less than a minute to apply for an IP PIN. You can visit this link and follow the steps. Your IP PIN will be assigned instantly. Store it somewhere with your tax records, so it can be included with the rest of your documents for filing at the end of the year.

Even if you do not believe your personal information was at risk, an IP PIN is a relatively simple and effective way to prevent tax identity theft. There is nothing worse than finding out your Social Security Number has already been used to file a fraudulent return. It takes quite a long time to get your tax return and IRS account adjusted.

I already have mine and think the additional protection is well worth it.