December 26, 2010 12:00 am

Special PIN for Identity Theft Victims

A number of taxpayers have contacted the IRS about being identity theft victims and have straightened out their tax accounts. For these taxpayers, the IRS will issue a 6-digit identity protection personal identification number (IP PIN) that can be used instead of a Social Security number. The IP PIN is valid for a single use only when filing a 2010 federal tax return.

The IRS is contacting these taxpayers and assigning them an IP PIN; no action on the part of a taxpayer is necessary. If you have questions, contact the IRS at [email protected].

Source: Dec. 21 eNewsletter for Professional

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Tax Glossary

Foreign tax credit

A credit for income taxes paid to a foreign country or U.S. possession. 401(k) plan. A deferred pay plan, authorized by Section 401(k) of the Internal Revenue Code, under which a percentage of an employee’s salary is withheld and placed in a savings account or the company’s profit-sharing plan. Income accumulates on the deferred amount until withdrawn by the employee at age 59?

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