Discovering that someone used your Social Security number to file a tax return can feel like the ground just shifted beneath your feet. It is unsettling and confusing. You may wonder how it happened and what it means for your finances.
Scammers go after tax returns because they are an easy way to grab a refund quickly. They file early, using your identity to beat you to the punch. Although it is a frustrating situation, this type of fraud is common. And there are clear steps you can take to recover.
Most people find out something is wrong when they try to file their own return. Your e-filed return might be rejected with a message saying a return has already been filed under your Social Security Number. Or you may get a notice from the IRS about a return you never submitted, or income from a job you never had.
Sometimes the first clue comes from seeing a tax transcript or account update you did not request. Whatever the red flag is, do not set the letter aside. IRS notices need to be opened and handled immediately.
Take a breath. Then start with the basics.
Call the IRS Identity Protection Specialized Unit at 1-800-908-4490. They will help you figure out what to do next. Then, fill out IRS Form 14039, the Identity Theft Affidavit. If you have not yet filed your return, mail in a paper return along with the affidavit. At the top of the return, write the words “Identity Theft” so it gets routed correctly.
This kind of fraud can be a sign of broader identity theft, so it is smart to report it beyond the IRS.
Go to IdentityTheft.gov to file a report with the Federal Trade Commission and get a step-by-step recovery plan. Notify all three credit bureaus Equifax, Experian, and TransUnion and ask them to place a fraud alert on your credit reports. It may also help to file a police report, especially if you need extra documentation later to prove the fraud occurred.
The IRS offers a tool called the Identity Protection PIN or IP PIN. It is a six-digit code that only you know, and it changes every year. Once you have an IP PIN, no one can file a tax return under your name without it. You can request one through the IRS website. It’s free and can help prevent this from happening again.
Additionally, be aware of IRS scam alerts, and never give out personal information over the phone or by text. Do an annual security checkup for your household, including updating passwords and shredding any documents with sensitive information.
Tax identity theft is often limited to your tax return, but it can signal a larger issue. To stay safe, check your credit reports regularly. Watch for new accounts or loans you did not authorize. Use strong, unique passwords for your bank, email, and tax related logins.
It is also a good idea to be cautious about giving out your Social Security Number. If you are not sure why someone is asking for it, do not share it. You might also consider an identity monitoring service, especially if you have had other issues with fraud.
It is natural to feel nervous when you get a letter from the IRS, especially if you have already been dealing with identity theft. But do not ignore it. Open the letter, read it carefully, and make sure it is truly from the IRS. The IRS will never reach out by email, text, or social media.
Follow the instructions in the letter, respond quickly, and keep copies of anything you send back. Remember, the IRS knows this type of fraud happens and will not hold you responsible for what a scammer did in your name.
If you start receiving unfamiliar bills or debt collection notices, take them seriously. Contact the fraud department of the company that sent the bill. Explain the situation and ask for the account to be closed. Request that any inaccurate information be removed from your credit report.
Keep track of all conversations, emails, and letters tied to the fraud. This documentation will be helpful if you need to dispute charges or prove your identity was stolen.
Yes, you can still file your return and get your refund, even if someone already filed a fake return using your name. You will need to mail in your tax return with Form 14039 attached. Include a note explaining what happened. Your return will take longer to process, but the IRS will work with you to resolve the issue.
Many people wonder if they will still receive their refund. The answer is yes. Once the IRS verifies your identity and clears up the fraud, your refund will be issued. It might take a little time, but your money is not gone.
Tax identity theft is serious, but it’s also something you can recover from. Acting quickly, keeping clear records, and using tools like the IP PIN will help you take control. Your tax return, your refund, and your peace of mind are worth protecting.
You do not need to figure it all out alone. The IRS, your tax professional, and tools like IdentityTheft.gov are there to help. Act early and protect your identity now so you don’t have to fix an even bigger problem later.