The CP01 is good news. The IRS has verified your identity theft claim and placed an identity theft indicator on your account. This marker alerts IRS employees that your account was compromised and helps prevent future fraudulent filings using your Social Security number.
What the Indicator Does
The identity theft indicator flags your account for additional scrutiny when returns are filed. If someone tries to file a fraudulent return using your Social Security number, the indicator triggers manual review before the return is processed. This doesn't make fraud impossible, but it makes it much harder for criminals to succeed.
The indicator also helps IRS employees distinguish between legitimate account activity and fraud-related transactions. If you call the IRS about your account, the employee can see the indicator and treat your case accordingly.
Your IP PIN
The CP01 often comes with an Identity Protection PIN, a six-digit number you must include on your tax return each year. The IP PIN is your personal authentication code. Without it, the IRS won't accept a return filed using your Social Security number.
The IRS issues a new IP PIN every year, usually in December or January. Keep each year's PIN secure. If you lose it, you can retrieve it through your IRS Online Account or by calling the IRS. Do not share your IP PIN with anyone except your tax preparer when they're filing your return.
Going Forward
Monitor your IRS account at least quarterly through your online account at irs.gov. Watch for unauthorized changes, unexpected account activity, or notices you didn't expect. File your return as early in the filing season as possible to beat potential fraudsters.
Consider placing a fraud alert or credit freeze with the three major credit bureaus if you haven't already. IRS identity theft often goes hand-in-hand with broader financial identity theft.
If you have questions about your identity theft case or your IP PIN, call us at (813) 229-7100.