What to do if you are the victim of IRS identity theft

The first step

When your social security number has been used to file a tax return, you may find out only when the IRS rejects your electronically filed return or sends you written notice that a return already exists. Alternatively, you can find out when you are notified of an additional tax due, know that a refund has been granted but you have not received it, or face an action for taxes not paid during a period, although these are incorrect in your case. You should also check to see if the IRS has recorded a wage slip from an unknown employer.

Treat any of these events as a fraud alert and notify the IRA immediately. Form 14039 is used for this purpose and tells the IRS that your tax account has been misused by an unauthorized person. Provide details of the tax year for which you believe fraudulent returns have been filed and also mention the last return you filed prior to the suspected identity theft.

Alerting the proper authorities

To report IRS identity theft, Form 14039 must be accompanied by copies of your social security card and a document that verifies your identity, such as a driver’s license, US passport, or other government-issued identification. If the IRS has notified you about filing a second return on your number, include a copy of this notice with the form and send it to the IRS. You can also call the number on the IRS notice to find out what to do.

In addition to notifying the IRS, you should also report identity theft to the FTC (Federal Trade Commission) using their hotline or visit their website to find out what to do. File a report with local law enforcement, and then also report potential identity theft to the major credit bureaus, Equifax, TransUnion, and Experian so you can safeguard your credit score from the impact of fraudulent financial transactions. Credit bureaus freeze your account so that any activity that may be carried out on your behalf is not reflected in your credit score until your identity is secure once again.

Identity theft statistics show that several of these incidents occur when taxpayers provide personal information or sensitive data in response to an email request or phone call from individuals claiming to be IRS officials. There are many who have also responded to inquiries through social media channels, which is also not a communication channel used by the IRS. Bearing in mind that the IRS never asks for information of this type without sending you a written notice is one of the easiest ways to prevent identity theft. However, if, despite your best efforts, your identity has been stolen, take immediate action to mitigate the risk to which you are exposed.

Please let us know if you have been a victim of IRS identity theft and how you dealt with the situation. You can contact us if you want us to add more information to this article or if you need help finding an identity theft protection plan that works for you.