IRS Implements Adjustments to Minimize Refund Delays and Address Identity Theft

November 21, 2024 TruthUSA

The IRS has announced new measures to streamline duplicate dependent claims, allowing for faster refunds and increased protection against fraud.

The Internal Revenue Service (IRS) has introduced changes to expedite refund processing for some taxpayers and enhance security measures against identity theft and fraud.

Beginning in the 2025 filing season, taxpayers filing electronically can now claim dependents, even if already claimed elsewhere, by providing a valid Identity Protection Personal Identification Number (IP PIN), the IRS disclosed in a Nov. 21 announcement.

These changes apply to all taxpayers with duplicate dependent claims, not limited to those claiming the Earned Income Tax Credit or Child Tax Credit. The IRS will now accept electronic filings of Forms 1040, 1040-NR, and 1040-SS in these instances, eliminating the need for paper filing that previously caused significant delays in refund processing.

According to the IRS, this alteration will expedite tax refund issuance for individuals with duplicate dependent claims, while also simplifying the process for taxpayers and providing quicker resolutions to issues, all while fortifying safeguards against fraudulent filings.

An IP PIN, a six-digit number provided by the IRS, verifies a filer’s identity and prevents unauthorized use of their Social Security number or Individual Taxpayer Identification Number. It ensures that only the taxpayer, or an authorized individual on their behalf, can file a return using their identifying information.

The IRS emphasized the necessity of an IP PIN for duplicate dependent claims to combat fraud and errors, whether intentional misuse or inadvertent mistakes. This added layer of security can thwart identity thieves from falsely claiming refunds or dependents using stolen data.

The IRS is urging taxpayers to obtain an IP PIN before Nov. 23, as the system will be offline for annual maintenance until early January 2025.

Taxpayers can acquire an IP PIN through their IRS Online Account, which also grants access to past tax documents, such as W-2 and 1099 forms. For those unable to use the online system, alternative methods like paper applications or in-person verification at a local Taxpayer Assistance Center are available.

The updated guidelines for e-filing with an IP PIN impact tax year 2024 onwards. Duplicate dependent claims for previous years, like 2022 and 2023, must still be submitted on paper. Additionally, the IRS specified that only the primary filer on the returns requires an IP PIN, with dependents and spouses not needing separate PINs.

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