Getting Married: 3 Things to Do Right Away to Avoid 2027 Tax Trouble

From the official announcement by IRS ↗

According to a notice from the Internal Revenue Service (IRS) released on July 7, 2026, the agency is stepping up its Identity Protection PIN (IP PIN) program to combat tax identity theft, which affects millions of taxpayers annually — part of a summer campaign launched by the IRS and the Security Summit alliance. During the 2024 tax season, the IRS had to suspend processing more than 1.9 million returns pending identity verification — a number that illustrates the scale of the problem. This is a reminder the IRS wants to send to taxpayers before entering the next tax season, when returns for tax year 2026 will be filed in early 2027.

Meanwhile, the upcoming tax season brings a host of other changes that taxpayers need to understand. For married couples filing jointly, the standard deduction for tax year 2026 is increasing to 32,200 USD. This helps reduce the portion of income subject to tax from the start, before tax brackets come into play. The highest 37% tax rate also has been adjusted, applying only to taxable income of 768,700 USD and above for married filing jointly — significantly higher than the 2025 threshold, helping many families avoid moving into a higher tax bracket due to inflation alone.

Groups directly affected include newly arrived residents and small business owners of Vietnamese descent — individuals who typically have thin credit files and are easy targets for tax identity theft criminals seeking refund fraud. Vietnamese veterans also deserve attention: if the disability rating determined by the Department of Veterans Affairs (VA) increases, they may qualify to claim a federal tax refund accordingly, including for prior years. Additionally, disability payments, pension income, and education benefits under the GI Bill are not subject to federal taxation. For families purchasing health insurance through the Marketplace, any change in household income — including marriage — requires updating the insurance subsidy claim using Form 8962, and the limit on recapturing excess insurance subsidy if income is estimated incorrectly will return in 2026 after being suspended since 2021.

In practice, an IP PIN is a string of numbers known only to the taxpayer and the IRS, reissued each year, which prevents criminals from filing fraudulent returns under the victim's name. Those who have been victims of tax identity theft will automatically receive an IP PIN once the IRS completes processing their case; others can proactively register through an online account on the IRS website, where initial identity verification is performed through the ID.me platform using a photo of valid identification and a selfie. If a tax return is flagged for verification, code 570 on the tax transcript signals that the return is being delayed, while code 971 indicates the IRS has sent a letter requesting additional information. For electronic filers receiving refunds via direct deposit, refunds typically arrive within 10 to 21 days after the IRS confirms receipt of the return — but this timeline will extend if the case becomes caught up in identity verification. See the IRS official notice at the source link below.

Analysis

Identity verification pressure is nothing new: the annual report to Congress from Erin M. Collins, the National Taxpayer Advocate, has identified this as one of the largest causes of delays in the IRS system. This context becomes even more concerning when the IRS had to place employees on furlough due to a federal government shutdown in October, even while requiring taxpayers to file on time during that period — showing that identity verification procedures could stretch even longer if staffing is cut. In other words, IP PIN is not just a tool for individual protection but also a way for the IRS to lighten the load on an already overburdened system, especially as health insurance subsidy boundaries are about to tighten again in 2026.

Diaspora Impact

Taxpayers are not required to do anything immediately, but those concerned about identity theft should proactively register for a free IP PIN through an online account at IRS.gov before the 2027 tax season begins, rather than waiting to receive a letter from the IRS. Initial identity verification through ID.me takes only a few minutes with a valid photo ID. If you receive an authentication letter but misplace it, you can call the Taxpayer Protection Program line at 800-830-5084 within the United States, or 267-941-1000 from abroad. Newly married couples or families with Marketplace insurance should update their household income estimate as soon as possible to avoid having to repay excess insurance subsidies when filing taxes. All services are free through official IRS channels — no need to pay any third party.