Imagine waking up to an unexpected notice from the IRS, informing you that a tax return has already been filed in your name, or that you owe taxes for income you never earned. A cold shiver runs down your spine. This isn't just a nuisance; it's a terrifying reality for millions each year: identity theft. Specifically, tax-related identity theft can wreak havoc on your financial life and create a long, stressful battle to regain control.
But here's the good news: you're not alone, and there's a clear path to recovery. This comprehensive guide will walk you through every essential step to report identity theft to the IRS and begin the process of reclaiming your financial security.
Step 1: Did You Just Discover You're a Victim? Let's Confirm!
Before we dive into the reporting process, it's crucial to understand what tax-related identity theft looks like. Did you receive a letter from the IRS about a tax return you didn't file? Is your e-filed return being rejected because a duplicate Social Security Number (SSN) has already been used? Are you getting notices about unfamiliar income or collection actions for years you didn't even file? These are all red flags.
If you received a notice from the IRS, do not ignore it! It's often the first indicator that something is wrong. Take a deep breath and let's get organized.
Step 2: Contact the IRS Immediately (If You Have a Notice)
If you received a specific notice or letter from the IRS indicating potential identity theft (like a 5071C, 4883C, or 5747C letter), your first and most critical action is to follow the instructions on that letter without delay.
Sub-heading: Understanding IRS Notices and How to Respond
- Letter 5071C: This letter usually asks you to verify your identity and tax return information using an online tool. This is often the quickest way to resolve the issue.
- Letter 4883C: This notice provides a toll-free number to call and verify your identity and tax return.
- Letter 5747C: This might instruct you to schedule an appointment at a local Taxpayer Assistance Center (TAC) to verify your identity in person. It will also provide a toll-free number if you simply need to inform the IRS you didn't file the return.
Important Tip: When responding to these letters, always have the letter itself, a copy of a prior-year tax return (if applicable), and any relevant documentation for the current tax year readily available. This will significantly speed up the verification process.
Step 3: File a Federal Trade Commission (FTC) Identity Theft Report
Even if you've already contacted the IRS due to a specific notice, the next crucial step is to file a comprehensive Identity Theft Report with the Federal Trade Commission (FTC). This is your official record of the identity theft and will generate a personalized recovery plan.
Sub-heading: Why the FTC Report is Essential
The FTC's IdentityTheft.gov website is an invaluable resource. When you create a report there, it:
- Creates a formal record: This report serves as official documentation of the identity theft, which can be useful for other agencies and creditors.
- Generates an Identity Theft Affidavit (Form 14039) for the IRS: The FTC system can help you automatically generate and electronically transfer Form 14039, the IRS Identity Theft Affidavit, directly to the IRS. This is often the preferred method of submission.
- Provides a personalized recovery plan: The FTC website will guide you through other important steps, such as contacting credit bureaus, freezing your credit, and dealing with fraudulent accounts.
Sub-heading: How to File with the FTC
- Visit IdentityTheft.gov: Go to the official FTC website for identity theft.
- Click "Get Started": Follow the prompts to report your specific situation.
- Provide Detailed Information: Be prepared to provide as much detail as possible about how you discovered the identity theft, what personal information was compromised, and any fraudulent activity you've identified.
- Review and Submit: Once you've entered all the necessary information, review your report carefully and submit it.
- Save Your Report: Print or save a copy of your FTC Identity Theft Report. You will need this for your records and potentially for other reporting.
Step 4: Submit IRS Form 14039, Identity Theft Affidavit
Whether you generated it through the FTC website or are completing it independently, Form 14039 is the official document you send to the IRS to formally report tax-related identity theft.
Sub-heading: Filling Out Form 14039
- Download the Form: You can download Form 14039, Identity Theft Affidavit, directly from the IRS website (IRS.gov).
- Fill It Out Accurately:
- Section A: Provide your personal information, including your full name, SSN or ITIN, current mailing address, and address used on your last filed tax return.
- Section B: Select the box that best describes your situation. Are you a victim and believe it's affecting your tax records? Are you a potential victim at risk for future impact?
- Section C: Explain the identity theft issue in detail. When did you become aware of it? How did it impact your tax account? Provide relevant dates and any other pertinent information.
- Section D: If you are filing on behalf of a dependent, or if you are a representative, fill in the relevant information.
- Attach Supporting Documents: Include photocopies (do not send originals) of any relevant documents, such as:
- A copy of your government-issued ID (driver's license, passport, Social Security card, or other valid U.S. Federal or State government-issued identification).
- A copy of your FTC Identity Theft Report.
- Any IRS notices you received.
- A police report, if you filed one.
- Sign and Date: Make sure to sign and date the form.
Sub-heading: Submitting Form 14039 to the IRS
You have a few options for submitting Form 14039:
- Online via FTC (Preferred): As mentioned in Step 3, the most straightforward method is often to generate and submit it directly through IdentityTheft.gov. The FTC will electronically transfer it to the IRS.
- Mail (If you haven't filed your tax return): If you haven't yet filed your legitimate tax return, attach the completed Form 14039 to the back of your paper tax return and mail it to the IRS location based on your state of residence. You can find the correct mailing address in the instructions for Form 14039 or on the IRS website.
- Mail or Fax (If you've already filed or are self-reporting): If you've already filed your legitimate tax return and it was rejected, or if you are self-reporting identity theft without an IRS notice (e.g., lost wallet), you can mail or fax Form 14039 separately. The mailing addresses and fax numbers are provided in the instructions for Form 14039.
- Note: If you received a notice with a specific fax number, use that number. Otherwise, refer to the general fax number provided on the form (currently 978-247-9965, but always double-check the latest form instructions).
Crucial Advice: Choose only one method of submission (online, mail with return, or mail/fax separately) to avoid delays. Do not submit duplicate Form 14039s.
Step 5: File Your Legitimate Tax Return (Even If It Was Rejected)
It is imperative that you still file your accurate tax return, even if a fraudulent one was filed in your name or your e-file was rejected.
Sub-heading: How to File Your Correct Return
- Paper Filing is Often Required: If a fraudulent return was already accepted, or if your e-file was rejected due to a duplicate SSN, you will likely need to file a paper tax return.
- Attach Form 14039: If you haven't already submitted Form 14039, attach it to the back of your paper tax return.
- Mark "Identity Theft": Write "Identity Theft" prominently at the top of your paper return to help the IRS identify it.
- Keep Records: Make copies of everything you send to the IRS for your records.
Step 6: Obtain an Identity Protection (IP) PIN
This is a proactive step that can significantly reduce your risk of future tax-related identity theft. An IP PIN is a six-digit number that only you and the IRS should know. It's used to verify your identity when you file your federal tax return.
Sub-heading: How to Get an IP PIN
- IRS Online Tool (Preferred): The quickest way to get an IP PIN is often through the IRS online "Get an IP PIN" tool at IRS.gov/ippin. You'll need to verify your identity using their Secure Access authentication process.
- Form 15227, Application for an IP PIN: If you can't use the online tool, you can apply by mail or fax using Form 15227. An IRS employee will call you to complete authentication, and your IP PIN will be mailed to you within 4-6 weeks.
- Taxpayer Assistance Center (TAC): You can schedule an appointment at a local TAC to verify your identity in person. Once confirmed, an IP PIN will be mailed to you.
Once issued, your IP PIN must be used on all future federal tax returns, including any late-filed returns for prior years. A new IP PIN is issued annually.
Step 7: Contact Other Key Agencies and Bureaus
Tax-related identity theft is often just one piece of a larger identity theft puzzle. It's critical to take steps to protect your broader financial identity.
Sub-heading: Reporting to Credit Bureaus
Contact one of the three major credit bureaus to place a fraud alert on your credit file. This makes it harder for identity thieves to open new accounts in your name.
- Equifax: 1-888-766-0008 or Equifax.com
- Experian: 1-888-EXPERIAN (1-888-397-3742) or Experian.com
- TransUnion: 1-800-680-7289 or TransUnion.com
Consider placing a credit freeze with each of the three bureaus. This prevents new credit from being opened in your name without your explicit permission.
Sub-heading: Other Important Contacts
- Social Security Administration (SSA): If your SSN was used for employment purposes (e.g., you received a W-2 from an unknown employer), contact the SSA at 1-800-772-1213 to report it.
- Your Financial Institutions: Notify your bank, credit card companies, and any other financial institutions if you suspect fraudulent activity on your accounts.
- Local Police Department: While not always required for tax identity theft, filing a police report can provide additional documentation and may be necessary for certain types of fraud or if you know the identity of the thief.
- State Tax Agency: If you're a victim of federal tax-related identity theft, you may also be a victim of state tax identity theft. Contact your state's tax agency for their reporting procedures.
Step 8: Keep Thorough Records
This process can be lengthy and involve multiple communications. Maintaining meticulous records is absolutely vital.
Sub-heading: What to Document
- Dates and Times: Record the date and time of every phone call, letter sent, or online submission.
- Names of Contacts: Note the names of individuals you speak with at the IRS, FTC, credit bureaus, etc.
- Confirmation Numbers: Keep any confirmation numbers provided for online reports or phone calls.
- Copies of All Documents: Maintain copies of all forms, letters, notices, and supporting documents you send or receive.
- A Detailed Log: Consider keeping a spreadsheet or detailed journal to track all your actions.
Step 9: Monitor Your Accounts and Credit
The battle against identity theft doesn't end with reporting. Ongoing vigilance is key to preventing further damage.
Sub-heading: How to Monitor Effectively
- Review Credit Reports Regularly: You can get a free copy of your credit report from each of the three major credit bureaus annually at AnnualCreditReport.com. Stagger your requests throughout the year to monitor your credit more frequently.
- Check Bank and Credit Card Statements: Scrutinize your financial statements for any unauthorized transactions.
- Review Social Security Earnings Statement: Access your Social Security statement online at SSA.gov to ensure your reported earnings are accurate and no one is fraudulently using your SSN for employment.
- IRS Online Account: If you have an IRS online account, regularly check it for any suspicious activity.
Step 10: Patience and Persistence
Resolving identity theft, especially tax-related cases, can take time. The IRS aims to resolve most identity theft cases within 120-180 days, but some complex cases can take longer. Do not get discouraged.
Sub-heading: What to Expect During Resolution
- The IRS will place an identity theft marker on your account to flag any suspicious activity.
- They will work to remove any fraudulent returns from your tax records.
- If you are due a refund, they will ensure it is properly processed and released to you.
- You will receive a letter when your case has been resolved.
Avoid contacting the IRS about the status of your claim too frequently, as this can actually cause delays. However, if you experience significant financial hardship due to the identity theft, you can contact the Taxpayer Advocate Service (TAS) for assistance.
10 Related FAQ Questions
Here are some frequently asked questions about reporting identity theft to the IRS, with quick answers:
How to report identity theft to the IRS if I haven't received a notice?
You can self-report by filing a Form 14039, Identity Theft Affidavit, with the IRS, either by mail or fax. You should also file a report with the Federal Trade Commission (FTC) at IdentityTheft.gov.
How to get an Identity Protection PIN (IP PIN) if I'm a victim of identity theft?
Once the IRS has confirmed you are a victim of identity theft, they will generally place you in the IP PIN program and mail you an IP PIN annually. You can also proactively request one through the IRS online "Get an IP PIN" tool at IRS.gov/ippin.
How to check the status of my identity theft case with the IRS?
The IRS generally advises against contacting them frequently for status updates, as it can slow down the process. They will send you a letter when your case is resolved. If you're experiencing significant financial hardship, you can contact the Taxpayer Advocate Service.
How to file my tax return if a fraudulent one was already filed in my name?
You will typically need to file a paper tax return, attaching a completed Form 14039, Identity Theft Affidavit, to the back. Write "Identity Theft" prominently at the top of your return.
How to report identity theft of my dependent's information to the IRS?
You can report this using Form 14039, Identity Theft Affidavit, noting that it's for a dependent. If your dependent was claimed on another return, you might need to file a paper return for your dependent and attach supporting documents.
How to contact the IRS Identity Protection Specialized Unit?
You can reach the IRS Identity Protection Specialized Unit at 1-800-908-4490. This number is specifically for identity theft issues.
How to protect myself from future tax-related identity theft?
Obtain an Identity Protection (IP) PIN, use strong and unique passwords for all online accounts, be wary of phishing scams, and regularly monitor your credit reports and IRS online account.
How to report a scam call or email claiming to be from the IRS?
Do not respond to suspicious emails or calls. Forward phishing emails to phishing@irs.gov. Report phone scams to the Treasury Inspector General for Tax Administration (TIGTA) at 1-800-366-4484.
How to get a copy of a fraudulent tax return filed in my name?
If a fraudulent return was filed in your name, the IRS may be able to provide you with a copy. You might need to submit Form 4506-F, Request for Copy of Fraudulent Return.
How to deal with state tax identity theft in addition to federal?
Contact your specific state's tax agency. Most states have procedures for reporting identity theft that mirror the federal process, and it's important to address both.
