How identity theft shows up on your IRS account
When criminals use your Social Security number (SSN) to file a return, the IRS may: receive multiple returns for the same SSN, flag your account for review, delay or deny your refund, or add incorrect tax records to your transcript. The IRS treats these as potential tax-related identity theft and may require extra identity verification before processing legitimate returns (see IRS Identity Theft resources: https://www.irs.gov/identity-theft-central).
In my work helping clients recover from tax-related identity theft, I’ve seen cases resolved in a few months and others that take longer when documentation is incomplete. The faster you act and document each step, the better the chance of restoring your account quickly.
Quick action checklist
- Preserve any IRS notices you receive.
- File Form 14039 (Identity Theft Affidavit) if the IRS tells you a return was filed using your SSN: https://www.irs.gov/forms-pubs/about-form-14039.
- Report identity theft at the federal level with the FTC at https://www.identitytheft.gov/ and follow that site’s recovery plan.
- Request an Identity Protection PIN (IP PIN) from the IRS to block fraudulent e‑filings in future tax years: https://www.irs.gov/identity-theft-faqs/get-an-identity-protection-pin.
- Check your credit reports (annualcreditreport.com), place a fraud alert or credit freeze, and monitor accounts.
Step-by-step recovery process
- Read and save the IRS notice. The IRS often sends a notice or letter explaining why your return or refund is affected—follow the specific instructions on that notice.
- File Form 14039 if instructed or if you know you’re a victim. Form 14039 establishes a formal identity-theft case with the IRS and starts their protective procedures (IRS: Form 14039 page).
- Report to the FTC and create a recovery plan at identitytheft.gov. The FTC issues an Identity Theft Report and a recovery plan, often required by banks and credit bureaus.
- Place a fraud alert or freeze on your credit reports and get copies of all three reports at annualcreditreport.com.
- Apply for an IP PIN. The IP PIN is a six-digit code the IRS gives to confirmed victims and eligible taxpayers; it prevents someone else from filing a return electronically using your SSN (IRS Get an IP PIN page).
- Order IRS transcripts and review account activity. Use the IRS Get Transcript tool or request transcripts by mail to spot suspicious returns or balances: https://www.irs.gov/individuals/get-transcript. (See our guide on using IRS transcripts for identity-theft detection: Using IRS Transcripts to Detect and Prove Identity Theft on Your Account).
- Respond to follow-up IRS requests quickly. The IRS may ask for identity documents, copies of police reports, or additional affidavits before releasing a refund.
- Keep thorough records of every call, letter, and form you submit. Note dates, names, and confirmation numbers.
Documents you may need
- A completed Form 14039 (IRS)
- Copy of the IRS notice you received
- Government-issued photo ID (driver’s license, passport)
- Police report or FTC Identity Theft Report (if available)
- Proof of address and financial statements showing fraudulent activity
Common pitfalls to avoid
- Waiting to act. Delays can make it harder to prove you’re the victim and may prolong refund holds.
- Assuming the IRS is the only agency to notify. Also inform banks, credit bureaus, and the FTC.
- Paying for services you can do for free. The FTC and the three credit bureaus provide free resources (identitytheft.gov, annualcreditreport.com).
Related resources on FinHelp
- For actions after an IRS notice: What to Do When You Receive a Tax Identity Theft Letter
- For using transcripts as evidence: Using IRS Transcripts to Detect and Prove Identity Theft on Your Account
When to get professional help
If the case is complex—multiple years affected, identity-theft-related audits, or tax balances you didn’t incur—consult a tax professional, enrolled agent, or tax attorney. In my practice, bringing a tax pro in early often shortens resolution time and helps secure penalty relief when appropriate.
Sources and further reading
- IRS — Identity Theft Central: https://www.irs.gov/identity-theft-central
- IRS — About Form 14039: https://www.irs.gov/forms-pubs/about-form-14039
- IRS — Get an Identity Protection PIN: https://www.irs.gov/identity-theft-faqs/get-an-identity-protection-pin
- Federal Trade Commission — IdentityTheft.gov: https://www.identitytheft.gov/
- USA.gov — Identity theft resources: https://www.usa.gov/identity-theft
Professional disclaimer: This article is educational and does not replace personalized tax, legal, or financial advice. Contact a qualified professional for guidance tailored to your situation.
