Amicus details identity theft protection steps for families.
Vancouver, Canada — As the 2025 filing season begins, the Internal Revenue Service (IRS) is urging taxpayers across the United States to adopt Identity Protection Personal Identification Numbers (IP PINs) as a safeguard against one of the fastest-growing financial crimes in the country: tax-related identity theft.
With criminal organizations exploiting stolen Social Security numbers to file fraudulent returns, steal refunds, and compromise family financial records, the IRS is expanding the availability of IP PINs and calling on households to make them a standard part of annual tax planning.
Amicus International Consulting, which specializes in legal identity restructuring and privacy strategies for families and businesses, emphasizes that this shift is part of a larger movement where governments worldwide are strengthening identity verification systems to protect taxpayers and revenue streams.
An IP PIN is a six-digit code issued annually by the IRS to confirm a filer’s identity. Once enrolled, a taxpayer must include their unique IP PIN with each return, ensuring that no one else can file under their Social Security number.
The system has already proven successful for victims of identity theft and is now open to all taxpayers who can verify their identities through IRS channels. By adopting an IP PIN, families dramatically reduce their exposure to refund fraud and gain control over their filing process. The IRS expects millions more households to join the program in 2025, a year already marked by record levels of reported data breaches and synthetic identity schemes.
A Growing National Threat
The scale of identity theft continues to rise in the United States, with the Federal Trade Commission reporting more than 1.1 million cases in 2024. Tax fraud remains one of the most disruptive forms, as it affects families during one of the most financially sensitive times of the year. Criminals often use Social Security numbers obtained from data breaches, phishing scams, or stolen records to file fraudulent returns early in the season. Families then discover the fraud only when their legitimate returns are rejected, often resulting in months of delays and complicated recovery efforts.
Amicus notes that children and retirees remain especially vulnerable. Criminals target minors because their Social Security numbers are unused for years, allowing fraud to go undetected. Retirees face risks due to increased exposure of their medical data and frequent interactions with government benefits systems. Families who assume that only working adults are at risk often find themselves blindsided when fraud surfaces in unexpected ways.
International Comparisons
While the IRS promotes IP PINs, other jurisdictions are developing parallel systems. Canada’s Canada Revenue Agency (CRA) has increased its use of two-factor authentication and secure passcodes for online accounts after repeated breaches, including incidents in 2020 that exposed tens of thousands of taxpayers. The CRA has not yet implemented a program identical to the IP PIN, but it now issues account-specific codes to block fraudulent access attempts. Taxpayers in Canada are encouraged to use My Account and ensure multi-factor authentication is activated.
In the United Kingdom, Her Majesty’s Revenue and Customs (HMRC) has launched initiatives to verify taxpayers’ identities more rigorously, particularly for those filing self-assessment returns online. HMRC integrates with the government’s digital identity service to authenticate users and prevent duplicate filings. Although the UK does not offer an annual rotating PIN system, it relies heavily on multi-layer verification and enhanced scrutiny for suspicious filings.
The European Union is preparing for broader adoption of its eIDAS framework, which standardizes digital identity tools across member states. Tax authorities in the EU are increasingly requiring strong identity assurance levels for online filings, integrating with national ID systems. For example, Germany and France have begun linking tax accounts with official eIDs, reducing the risk of unauthorized access. These moves parallel the U.S. approach but reflect Europe’s emphasis on digital identity wallets rather than annual PIN codes.
Amicus emphasizes that comparing these jurisdictions shows the global trend toward stronger identity assurance. Families with dual filings across countries must be particularly attentive to varying standards, ensuring compliance while protecting against cross-border fraud attempts.
Case Study: A Midwestern Family Blocks Repeat Attacks
A family in Illinois fell victim to repeated tax fraud in 2022 and 2023 after criminals obtained their Social Security numbers during a healthcare provider breach. In both years, fraudulent returns were filed before the family could submit their own, leading to delayed refunds and audits. In 2024, the family enrolled in the IRS IP PIN program. Their 2024 return was processed smoothly with no fraudulent attempts recorded. By 2025, they had enrolled their children as well, ensuring the entire household was protected. The experience transformed their approach to tax season from anxiety and uncertainty to confidence and security.
Case Study: Canadian-American Dual Nationals Protect Both Systems
A dual-national family living in Vancouver faced unique challenges, filing taxes in both Canada and the United States. In 2023, they discovered fraudulent activity in their CRA account, likely due to a phishing attack. While Canada provided limited relief, the family enrolled in the IRS IP PIN program for their U.S. filings and added multi-factor authentication to their CRA account. With Amicus’s guidance, they created a coordinated defense plan for both systems. By 2024, they had successfully blocked unauthorized filings in both countries. Their experience highlights the complexity of multi-jurisdictional tax obligations and the importance of adopting layered strategies.
Case Study: Retirees Secure Their Refunds
A retired couple in Florida experienced fraud after their Social Security numbers were compromised in a hospital data breach. Criminals filed a fraudulent tax return in 2022, delaying their refund for nine months. With their accountant’s advice, they enrolled in the IP PIN program in 2023. Since then, their returns have been processed without interruption. They now advocate for fellow retirees in their community to adopt IP PINs, especially those living on fixed incomes who cannot afford delays.
Case Study: Single Parent Protects Child from Synthetic Identity Theft
A single parent in California discovered in 2024 that her child’s Social Security number had been used to create a synthetic identity. Criminals opened multiple credit accounts in the child’s name, which remained undiscovered until the accounts defaulted. By enrolling in the IP PIN program, the parent prevented criminals from using the number during tax season. Amicus also guided the family through freezing the child’s credit and monitoring future activity. This proactive approach safeguarded the child’s future financial opportunities.
Case Study: Small Business Owners Face Unique Risks
A small business-owning couple in Texas discovered fraudulent unemployment claims filed in their employees’ names in 2023. Soon after, criminals attempted to file fraudulent tax returns using the owners’ Social Security numbers. By adopting IP PINs for their household and implementing stronger cybersecurity practices for their business, they successfully blocked further attempts. Amicus assisted them in developing policies for employees, ensuring that both business and personal data remained protected. Their story demonstrates that small business owners must adopt both household and enterprise-level safeguards.
Synthetic Identity Fraud on the Rise
One of the fastest-growing threats is synthetic identity theft, in which criminals combine real Social Security numbers with fictitious names, addresses, and birthdates to create new identities. These synthetic profiles are then used to apply for credit, benefits, or tax refunds. Children’s Social Security numbers are particularly valuable in this scheme, as they remain unused for years. By the time fraud is discovered, extensive damage has often been done. Amicus stresses that IP PIN adoption is one of the few tools that can block criminals from using stolen Social Security numbers for fraudulent tax filings.
Practical Guidance for Families
Amicus recommends that families adopt a layered approach to identity protection. Key steps include:
Enroll in the IP PIN Program well before filing season begins, ensuring that the household’s Social Security numbers are locked down.
Secure children’s identities by requesting IP PINs where available and freezing credit until adulthood.
Monitor credit regularly with all three major bureaus: Experian, Equifax, and TransUnion.
Adopt strong password practices, using password managers and avoiding reuse across platforms.
Limit unnecessary data sharing by questioning why Social Security numbers are requested on forms, and refusing them where not legally required.
Encrypt and secure tax records, both digital and physical, reducing exposure in the event of theft.
Stay alert to phishing scams, as many fraudulent filings begin with successful email or SMS attacks.
Building Resilience Beyond Tax Season
While IP PINs are powerful tools, Amicus emphasizes that families must think beyond tax season. Identity theft is a year-round threat, affecting everything from credit applications to medical records. Families who integrate annual identity checkups alongside financial planning are better prepared to detect and respond to emerging threats. Amicus encourages households to treat data protection as a family culture, much like budgeting or retirement planning.
Global Implications
As governments worldwide strengthen digital identity frameworks, families with international ties must remain aware of varying requirements. The IRS’s IP PIN initiative is mirrored by Canada’s two-factor CRA protections, the UK’s identity verification through HMRC, and the EU’s adoption of eIDAS. Families filing across borders must integrate these systems, ensuring compliance while limiting exposure. Amicus advises such households to maintain a consolidated calendar of renewal dates, authentication requirements, and monitoring practices.
Conclusion
The IRS’s call for widespread IP PIN adoption in 2025 represents a turning point in taxpayer identity protection. By securing annual codes, families take back control over their Social Security numbers and protect themselves against refund fraud. Amicus International Consulting underscores that while IP PINs are not a complete solution, they are a vital foundation in a broader strategy of resilience.
Families who act now, enrolling in the program and adopting layered defenses, will navigate the 2025 filing season with confidence. For households balancing multiple obligations across jurisdictions, early adoption offers not only peace of mind but also a proven shield against evolving fraud threats.
Contact Information
Phone: +1 (604) 200-5402
Email: [email protected]
Website: www.amicusint.ca
