Tax identity theft happens when a criminal files a falsified tax return using another taxpayer’s identity. The goal is to use your stolen information to claim a tax refund for the scammer. If someone gets ahold of your Social Security number (SSN), Individual Taxpayer ID Number (ITIN), or other personal information, you may be at risk of tax fraud.
Tax identity theft can cause major disruptions for your tax filing. Processing your tax return, along with any refund you might be owed, could be delayed for months or even years (the Taxpayer Advocate Service of the IRS says identity theft cases take an average 22 months to settle).
You can help reduce the time it takes to resolve tax identity theft if you respond quickly. Here’s what to do if you find out someone filed a tax return in your name.
How to Know if Someone Filed a Tax Return in Your Name
If someone files a tax return in your name, you will find out when you try to file your legitimate tax return. The IRS will reject your tax return submission, and you will receive a notice in the mail to inform you that a return has already been filed using your SSN or ITIN.
Some other warning signs that you may be a victim of tax identity theft include:
- Income or wage statements (W-2s, 1099s) from employers you never worked for
- Unexpected tax bills or refund payments from the IRS
- Tax transcripts in the mail you did not request
- Notices from a tax preparation software company about an account created in your name, when you did not create one
- Notices from a tax preparation software company that your existing account was accessed or disabled
- IRS notices informing you that you owe more tax, your refund was offset for a balance due, or you have collection actions taken against you for a year you did not earn any income or file a tax return
What to Do if Someone Filed a Tax Return in Your Name
Here’s what you should do if someone filed a tax return in your name:
Respond to the IRS Notice
The IRS will send you a CP5071 notice to inform you that a federal tax return was filed using your information. When you receive a CP5071 notice, you will need to verify with the IRS whether the return is legitimate or not. You can provide verification online or call the IRS using the phone number listed on your notice.
If you need special assistance, you can call 800-908-4490.
File a paper tax return
The IRS will automatically reject any e-filed tax return using a SSN or ITIN that has already been filed for the tax year. You will need to file a paper tax return, and complete Form 14039, Identity Theft Affidavit, and send both to the IRS.
You can complete the form online or send a hard copy by mail or fax.
Use Your IP PIN for Future Returns
When the IRS confirms a case of tax identity theft, it will send you a CP01A notice in the mail and issue you an Identity Protection Personal Identification Number (IP PIN). This is a six-digit number that stops criminals from submitting tax returns using your identity.
You will need to provide your IP PIN when you file your tax returns to verify your identity. The IRS will issue a new IP PIN every year for your upcoming tax return.
Check Your Credit Reports
If a criminal gains access to your SSN and is using it to file falsified tax returns, they may also try to open new credit cards or loans using your identity. Regularly check your credit reports to look for accounts you don’t recognize; false or inaccurate information should be disputed with the credit bureaus.
Freeze your credit reports
You can also freeze your credit reports to prevent criminals from opening new credit accounts using your identity. Credit freezes prevent anyone from checking your credit report, which stops lenders from issuing new credit.
When you need to apply for credit, you can temporarily lift the freeze and then lock your credit reports back down once the application goes through.
Watch Out for Future Tax Scams
Look out for future tax scams to avoid becoming a victim again using these tips:
- The IRS will never contact you to demand immediate payment. For legitimate tax bills, you should send payments to the U.S. Treasury.
- The IRS will never demand payment in the form of cash, gift cards, wire transfers, or digital payment apps.
- The IRS generally corresponds via mail and will never communicate through social media or text messages. In some rare cases, the IRS may visit you in person at home or at work after notifying you via mail.
- The IRS will send you a notice before requesting information. It will not ask you for your IP PIN, SSN, or other personal information out of the blue.
Tax identity theft FAQs
Here are some common questions regarding tax identity theft:
What if someone claimed my dependent without my permission?
If someone claimed you on their taxes without permission, you need to file your own tax return, respond to any IRS letters (like Letter 5071C or CP87A), and potentially file IRS Form 14039 (Identity Theft Affidavit) to report the fraud and protect yourself from future issues by getting an Identity Protection PIN (IP PIN). You should also report the incident at IdentityTheft.gov and consider filing a police report.
Related: How to Get an IP PIN for Your Child
What are signs someone is using my SSN?
Signs of Social Security number (SSN) misuse include receiving unexpected tax, medical, or debt collection notices for accounts you didn't open. Key indicators include IRS rejections of tax returns, unexplained credit score drops, unfamiliar accounts on credit reports, and mail missing from your mailbox.
Can I block my SSN from being used?
Yes, you can lock your Social Security Number (SSN) for free using the government's myE-Verify system, which prevents its misuse for employment verification; you also can take steps like freezing credit and getting an IRS PIN for broader protection, as locking your SSN itself isn't a universal shield but blocks specific fraud.
How IdentityIQ Can Help Keep You Safe from Tax Fraud
Signing up for identity protection with IdentityIQ can help you avoid tax scams or minimize the damage if your identity gets stolen. IdentityIQ features that can help prevent tax identity theft include:
- Identity monitoring. IdentityIQ watches your credit reports and other public databases to identify suspicious activity and signs of fraud. If someone uses your personal information to commit identity theft, you immediately get notified so that you can respond. For example, if someone opens a credit card account using your SSN, you may want to proactively request an IP PIN from the IRS to prevent tax identity theft from happening.
- Bitdefender® antivirus software. Our plans include a subscription to antivirus software that can prevent you from visiting malicious websites or downloading viruses. You receive protection from threats that aim to steal your personal data and use it for identity theft.
- Virtual private network (VPN). With IdentityIQ’s VPN subscription, you can use the internet anonymously and keep your activity private from criminals who want to steal your information to use it for tax fraud.
- Identity theft insurance. You get covered for up to $1 million in losses caused by identity theft, which can help you restore your identity without paying out of pocket. Covered losses can include legal expenses and professional help you pay for during the recovery process.
- Identity restoration. When identity theft happens, IdentityIQ customers get access to a dedicated identity restoration expert that will put together a customized response plan and provide step-by-step guidance.
IdentityIQ Helps You Stay Safe From Tax Fraud
Discovering a criminal filed a tax return using your identity can be severely distressing. The processing of your tax return and any refund you might be owed could take months, or even years. And you need to take proactive steps to ensure your identity is safe in other areas – such as freezing your credit reports to ensure no one can open new credit accounts in your name.
IdentityIQ can help relieve your stress by handling the hard work of keeping your identity safe. With real-time credit monitoring, antivirus protection, and identity recovery counseling and guidance, you have a partner in your corner to prevent threats and spot scams as soon as they happen. It’s the simplest way to protect your identity and get back to your everyday life with greater peace of mind.
