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

Estimated tax

Advance payment of current tax liability based either on wage withholdings or installment payments of your estimated tax liability. To avoid penalties, you generally must pay to the IRS either 90% of your final tax liability, or either 100% or 110% of the prior year’s tax liability, depending on your adjusted gross income.

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