Quick summary
If you receive an identity theft letter from the IRS, act quickly and deliberately. Read the letter carefully, verify it’s legitimate, follow the IRS instructions (which often include identity verification or filing Form 14039), and secure your credit and personal records. Keep organized documentation of every step you take.
Why this matters
Identity-theft-related tax fraud can delay refunds, create false tax liabilities, and produce long-term credit and tax problems. The IRS treats suspected tax-related identity theft seriously and has programs to help victims, but the process often requires patience and persistence. Early action reduces harm and speeds resolution (IRS: Identity Theft).
Step-by-step response (first 72 hours)
- Read the letter exactly as written. Identify the notice code and any deadlines or contact instructions. Many identity-theft notices reference identity-verification steps (for example, the 5071C letter invites identity verification) but the exact code varies.
- Confirm the letter is from the IRS. Genuine IRS letters come by U.S. mail and include a notice code and an IRS phone number; the IRS does not initiate contact by email or text asking for personal information (IRS: Tax Scams/Consumer Alerts). If you suspect the mail piece is a scam, do not call any phone number or click links in the letter until you verify it via irs.gov.
- Do not provide additional personal data by phone or email to unverified contacts. Scammers frequently copy real IRS language to try to collect more information.
If the IRS asks you to verify your identity
The letter may direct you to verify your identity online or by phone. Use only the contact details on irs.gov or the phone number printed on the letter. The IRS’s online Identity Verification Service and the Get an IP PIN tool are the official channels for responding to identity-verification notices (IRS Identity Verification; IRS Get an IP PIN).
Filing Form 14039 (Identity Theft Affidavit)
If the IRS indicates your SSN was used fraudulently on a return, you should complete and submit Form 14039, Identity Theft Affidavit. This form tells the IRS you’re a victim and prompts them to protect your account and open an identity-theft investigation. Current Form 14039 and filing instructions are on the IRS website (IRS Form 14039).
Practical tips for Form 14039:
- Complete the form in full and attach a copy of the identity theft letter, if requested.
- Mail or fax the form per the address or instructions on the form or the notice you received.
- If you file electronically and need immediate protection, follow the notice’s guidance on identity verification before or instead of mailing the affidavit.
Protect your credit and identity outside the IRS
- Immediately get free copies of your credit reports through AnnualCreditReport.com and check for unauthorized accounts or inquiries. The federal law allows one free report from each bureau weekly (AnnualCreditReport.com).
- Place a fraud alert or credit freeze with the three major bureaus (Equifax, Experian, TransUnion). A freeze prevents new accounts from being opened without your explicit lift. Contact the bureaus directly or use their online systems.
- Report identity theft to the Federal Trade Commission at IdentityTheft.gov. The FTC provides a personalized recovery plan and helps you generate an Identity Theft Report, which can be useful for dealing with creditors and law enforcement (FTC Identity Theft).
- Consider filing a local police report when there’s significant financial loss or if a third party misused your identity to commit crimes.
Request an Identity Protection PIN (IP PIN)
If your SSN has been used to file fraudulent returns, apply for an IRS Identity Protection PIN. An IP PIN is a six-digit code the IRS issues to confirmed victims; it must be entered on your tax return each year to prevent fraudulent e-filing. Learn about eligibility and how to apply through the IRS Get an IP PIN tool (IRS: Identity Protection PIN).
Communicate with the IRS and keep records
- Keep originals and copies of all IRS letters, Form 14039, police reports, FTC reports, and any correspondence with credit bureaus.
- When you call the IRS, record the date, time, representative’s name, and a summary of what was said. If advised to mail documents, use tracked delivery and retain tracking numbers.
- If the IRS places a marker on your account, ask for guidance on what to expect next and how long processing typically takes.
When refunds or tax liabilities are affected
If a fraudulent return was filed in your name, your legitimate refund may be delayed while the IRS investigates. The IRS may freeze the account, and resolving the matter may require additional documentation (w-2s, 1099s, proof of filing). Recovery timelines vary; simple cases may resolve in a few weeks, complicated identity-theft incidents that require substantiation can take several months (IRS Identity Theft resources).
Use the Taxpayer Advocate Service if you’re stuck
If you cannot get timely help or face significant hardship, contact the Taxpayer Advocate Service (TAS). TAS is an independent organization within the IRS that assists taxpayers who have unresolved problems with the IRS (IRS Taxpayer Advocate Service). Use TAS when normal channels aren’t resolving the issue.
Common scams to watch for
Scammers often spoof IRS letters or send counterfeit notices that look official. Red flags include urgent demands for payment by non-traditional methods (gift cards, wire transfers), requests for passwords or bank account details by email, or contact from people who claim to be IRS agents but ask you to confirm your Social Security number via email or text. Always verify via irs.gov.
Professional tips from practice
- Organize a single folder (physical or digital) for all identity-theft documents. In my work I’ve found a time-stamped, central file speeds communication with the IRS and creditors.
- If a return was fraudulently filed, gather copies of your wage statements (W-2s), 1099s, and proof of your original filing method (e-file confirmation or proof of mailing). These documents shorten back-and-forth with the IRS.
- Use the IRS online account to monitor activity on your tax account once identity verification is complete. The account dashboard often shows recent filings, balances, and communications.
Timeline and what to expect
- Immediate actions: identity verification, Form 14039 filing, credit report checks (days).
- IRS investigation and account markers: weeks to months, depending on complexity.
- Full resolution (refund recovered or false liabilities cleared): can take several months in complicated cases, often longer if multiple tax years or identity theft across agencies is involved.
Resources and authoritative links
- IRS Identity Theft: https://www.irs.gov/identity-theft-fraud-scams
- IRS Form 14039 (Identity Theft Affidavit): https://www.irs.gov/forms-pubs/about-form-14039
- IRS Get an IP PIN: https://www.irs.gov/identity-theft-fraud-scams/get-an-identity-protection-pin
- Taxpayer Advocate Service: https://taxpayeradvocate.irs.gov/
- FTC Identity Theft: https://www.ftc.gov/faq/consumer-protection/report-identity-theft
- CFPB guidance on identity theft: https://www.consumerfinance.gov/consumer-tools/identity-theft/
- Request free credit reports: https://www.annualcreditreport.com
Related FinHelp resources
- How to Handle Identity Theft on Your Tax Account: https://finhelp.io/glossary/how-to-handle-identity-theft-on-your-tax-account/
- IRS Identity Theft Protection PIN: https://finhelp.io/glossary/irs-identity-theft-protection-pin/
- Protecting Your Refund from Identity Theft: Detection and Recovery Steps: https://finhelp.io/glossary/protecting-your-refund-from-identity-theft-detection-and-recovery-steps/
Common mistakes to avoid
- Ignoring the notice or assuming the IRS will fix it without your input.
- Calling numbers in suspicious emails or completing online forms linked from unverified messages.
- Failing to document phone calls and mailed submissions.
Closing and disclaimer
Identity-theft letters from the IRS are treatable but often require careful documentation and persistence. This article provides general guidance based on IRS procedures and consumer-protection resources current in 2025; it is educational only and not a substitute for personalized legal, tax, or financial advice. If your case is complex or you feel overwhelmed, consult a tax professional experienced with identity-theft cases or contact the Taxpayer Advocate Service for help.
