Immediate priorities after you receive an IRS identity-theft notice
Receiving an IRS notice about identity theft is stressful, but a clear, prioritized response reduces harm and shortens recovery time. In my 15 years advising clients on tax issues, the fastest, most effective outcomes came from treating the notice as urgent, verifying its authenticity, and following IRS direction without delay.
Quick checklist (do these first):
- Read the notice carefully and note any instructions or deadlines. Don’t ignore it.
- Verify the letter is from the IRS (see next section).
- If the notice instructs you to complete Form 14039 (Identity Theft Affidavit) or to call a phone number, follow those steps promptly.
- Report the theft to IdentityTheft.gov (FTC) to create an official recovery plan.
- Secure your credit (fraud alert or credit freeze) and change passwords for financial and tax accounts.
How to verify the notice is legitimate
The IRS sends specific letters and notices when it suspects tax-related identity theft. A common example is Letter 5071C (an identity verification letter), but the IRS also sends other notices when it detects suspicious activity. Confirm legitimacy by:
- Using the contact information on the notice and cross-checking it with the IRS Identity Theft Protection page—do not call phone numbers from suspicious emails or texts (IRS: https://www.irs.gov/identity-theft-protection).
- Looking for details such as the notice number, your full name or SSN (partially masked), and the tax year referenced.
- Remembering that the IRS will not initiate contact by email, text or social media to request personal or financial information. If you received a message asking for such information, treat it as a scam and report it.
If anything about the letter looks off—poor grammar, odd sender address, or a demand for payment via gift cards—do not respond. Instead, go to the IRS site above and use the contact options there.
Step-by-step: What to do next
1) Follow the notice instructions exactly. Many IRS identity-theft notices include specific next steps and a deadline. Acting within those windows avoids delays to your legitimate tax filings and refunds.
2) File Form 14039 (Identity Theft Affidavit) when instructed. Form 14039 formally notifies the IRS that you are a potential victim. The IRS will use the information to research and protect your account. You can find Form 14039 and filing instructions on the IRS site (Form 14039). Include supporting documentation if requested (see “Documents to gather” below).
3) Request an Identity Protection PIN (IP PIN) if you qualify or as recommended. An IP PIN is a six-digit number the IRS provides to confirmed identity-theft victims and to taxpayers who voluntarily enroll through the IRS’ Get an IP PIN tool. An IP PIN helps prevent someone else from filing a tax return using your SSN (IRS: Get an IP PIN).
4) Report the theft to the Federal Trade Commission at IdentityTheft.gov. That site creates a recovery plan, helps you generate an FTC Identity Theft Report, and provides sample letters and forms you can use when dealing with creditors and credit bureaus (FTC: https://www.identitytheft.gov).
5) Consider filing a police report. If personal identifying documents were stolen or misused, a police report can strengthen disputes with creditors and the IRS.
6) Place a fraud alert or credit freeze with the major credit bureaus (Equifax, Experian, TransUnion). A credit freeze is stronger and prevents most new credit lines from being opened in your name; a fraud alert is less restrictive but warns creditors to take extra steps. Visit the FTC’s credit freeze guidance for the current process.
7) Order your credit reports and monitor accounts. Get free credit reports at AnnualCreditReport.com and review them for accounts you don’t recognize. Also monitor bank accounts, retirement accounts, and benefit statements.
8) If you find fraudulent tax returns or accounts, document everything and follow the IRS and FTC instructions for disputes. Keep copies of letters, forms, and phone call notes (dates, names, reference numbers).
Documents to gather when you respond
When you file Form 14039 or speak with the IRS, having organized documentation speeds resolution:
- A copy of the IRS notice you received.
- A valid government photo ID (driver’s license or passport).
- Proof of your current address (utility bill, bank statement).
- Any police report or IdentityTheft.gov report numbers.
- Copies of any tax returns you did file for the year(s) in question.
In my practice, providing clear documentation the first time reduces the number of follow-ups from IRS specialists.
Timelines and what to expect
- The IRS often delays refunds when identity theft is suspected. This can extend processing by weeks or even months while they investigate.
- After you file Form 14039 and supply requested documentation, the IRS will investigate and, when appropriate, assign an Identity Protection Specialized Unit or an Identity Protection PIN.
- Keep a record of correspondence. If you file a follow-up, having dates and reference numbers makes escalation smoother.
For more on how the IRS processes these cases, see our article How the IRS Processes Identity Theft Cases.
Additional protections and recovery steps
- Enroll in credit monitoring services if you prefer ongoing alerts. Some companies offer dedicated identity-theft recovery help as part of paid plans.
- Secure your online accounts: update passwords, enable multi-factor authentication on email, tax software, and financial portals.
- If you’re worried about returns already filed in your name, ask the IRS about an IP PIN and review our guide on Understanding IRS Identity Protection PINs to see how it works.
Common mistakes I see (and how to avoid them)
- Ignoring the notice. Delay makes investigations longer and can block legitimate refunds.
- Calling numbers in suspicious emails or texts. The IRS won’t ask for sensitive details by email; use the official IRS site contact info.
- Assuming a credit freeze alone resolves tax identity theft. It helps prevent new credit but does not automatically resolve fraudulent tax filings.
A client I worked with ignored a notice for months and later faced a longer hold on a legitimate refund and extra paperwork; prompt action would have shortened the process significantly.
When to get professional help
If the identity theft affects multiple years, involves business filings, or you’re not getting clear responses from the IRS, consult a tax professional with experience in identity-theft cases. In complex cases, I’ve helped clients coordinate with IRS Identity Protection specialists, the FTC, and credit bureaus to restore tax records and recover refunds.
Helpful links and internal resources
- IRS Identity Theft Protection (official guidance): https://www.irs.gov/identity-theft-protection
- FTC IdentityTheft.gov (report and recovery plan): https://www.identitytheft.gov
Related FinHelp articles you may find useful:
- “IRS Identity Verification Letters: What They Ask and How to Respond” — a step-by-step look at common IRS letters and how to answer them (read more).
- “Understanding IRS Identity Protection PINs” — explains IP PIN eligibility and enrollment (read more).
- “How the IRS Processes Identity Theft Cases” — details IRS case flow and timelines (read more).
FAQs (short answers)
- Do I always need to file Form 14039? File it when the IRS instructs you to or when you confirm tax-related identity theft.
- Will I get my refund delayed? Possibly — identity-theft investigations commonly delay refunds until the IRS can verify the correct filer.
- Can the IRS remove fraudulent returns? Yes, once they verify the issue and you provide documentation; this can take time.
Final notes and disclaimer
Identity-theft notices from the IRS require prompt attention, clear documentation, and often several weeks of follow-up. The steps above reflect current IRS and FTC guidance as of 2025 and practical approaches I use with clients. This article is educational and does not replace personalized legal or tax advice — contact a tax professional for help tailored to your situation.
