Immediate steps to take when the IRS places an identity-theft hold

If the IRS places an identity theft hold on your refund, treat it as urgent but manageable. The IRS uses holds to stop fraudulent refunds; resolving one requires you to verify identity and provide supporting documentation. Below is a practical, prioritized checklist to guide you through the process and shorten the time to resolution.

1) Read the IRS notice and follow its instructions

The IRS will normally send a notice or letter explaining the reason for the hold and what steps to take next (this may be a CP notice or an identity-verification letter such as Notice 5071C). Carefully read the notice and follow its instructions. The notice will tell you whether you should call the IRS, submit documents, or complete specific forms.

Why this matters: the notice contains the most direct instructions for your case and the correct contact point. Do not ignore the correspondence — doing so prolongs the hold.

Sources: IRS Identity Theft guidance (irs.gov/identity-theft-fraud-scams/identity-theft-information-for-taxpayers).

2) Gather proof of identity and documentation

Common documents the IRS may request:

  • A government-issued photo ID (driver’s license, passport)
  • Social Security card or SSA correspondence showing your SSN
  • A copy of the tax return you filed or intended to file
  • Wage and income documents (W-2s, 1099s)
  • A copy of the IRS notice you received
  • Police report or FTC report (when identity theft is confirmed)

Tip from practice: keep scanned copies in a secure folder (encrypted if possible) so you can transmit them quickly if requested.

3) Confirm your identity with the IRS

Follow the contact instructions on the IRS notice. If the notice provides a phone number, call that number and have your documents ready. If it directs you to an online verification step, use only the official IRS site (irs.gov) — never follow links from unexpected emails or texts.

If you did not receive a notice but believe a hold is in place (for example, because your refund isn’t moving and you find a suspicious return filed under your SSN), go to the IRS Identity Theft resources page and follow the steps there, including how to contact the IRS Identity Protection Specialized Unit. (irs.gov/identity-theft-fraud-scams)

4) File IRS Form 14039 (Identity Theft Affidavit)

When identity theft is suspected or confirmed, complete IRS Form 14039, Identity Theft Affidavit. This form tells the IRS you’re a victim and begins the process of placing a marker on your tax account so future returns must be verified. The form also instructs the IRS whether you want the agency to continue processing a submitted return or to stop all processing until identity is verified.

Filing tips:

  • Follow the form instructions exactly and include copies (not originals) of identity documents.
  • Mail or fax as directed on the form or on the IRS notice. Keep proof of mailing (certified mail or tracked courier).
  • If you have a tax professional, consider filing using your representative’s authorization (Form 2848).

Reference: IRS Form 14039 and instructions (irs.gov).

5) File police and FTC reports and collect documentation

If your identity was used to commit fraud, file a police report with your local law enforcement and get a copy or a report number. Also file a complaint at IdentityTheft.gov to generate a recovery plan (identitytheft.gov) and get an official FTC Identity Theft Report. These documents strengthen your claim and are often requested by creditors, financial institutions, and sometimes by the IRS.

6) Place fraud alerts or credit freezes and monitor credit

To reduce future misuse of your identity, place a fraud alert or security freeze with the three major credit bureaus (Equifax, Experian, TransUnion). Check your credit reports for unfamiliar accounts or inquiries and dispute any fraudulent items.

Consumer resource: Consumer Financial Protection Bureau guidance on identity-theft recovery (consumerfinance.gov).

7) Enroll in or request an Identity Protection PIN (IP PIN)

If you’re a confirmed victim of tax-related identity theft, the IRS may issue an Identity Protection PIN (IP PIN). This six-digit number must be entered on your tax return to confirm your identity and will prevent someone else from filing using your SSN. You can also proactively enroll in the IP PIN program at the IRS website to protect future filings: https://www.irs.gov/identity-theft-fraud-scams/get-an-identity-protection-pin.

In practice: repeatedly I’ve seen IP PINs reduce repeat incidents and speed refund releases on subsequent tax filings.

8) Follow up and track progress

Keep a detailed log of every call, letter, shipment, and document you submit, including dates, names, and badge numbers. Use certified mail or tracked methods for any physical documents and retain receipts. If the IRS requests more information, respond promptly.

How long will this take? Expect anywhere from a few weeks to several months. Simple identity confirmations can be handled relatively quickly, but complex fraud cases or those requiring manual review can take longer. The IRS notes that identity-theft investigations and account recovery are variable in length depending on complexity (irs.gov).

9) If your refund is delayed due to other verification reasons

Sometimes refunds are held for other verification reasons (Earned Income Tax Credit, math errors, duplicate filing). If you receive a notice that describes a different reason, respond to that notice accordingly. For identity-related holds, however, follow the identity-theft-specific instructions in your IRS correspondence.

10) When to involve a tax professional or an attorney

If the case is particularly complex (business identity theft, multiple years affected, or if you receive IRS notices that are difficult to interpret), hire a qualified tax professional experienced in identity theft cases. An enrolled agent (EA), CPA, or tax attorney can represent you before the IRS when authorized with Form 2848.

Professional perspective: in my practice I’ve seen cases where a timely engagement of an experienced EA cut through bureaucratic delays and clarified documentation requirements.

Documents checklist (quick reference)

  • Copy of IRS notice
  • Completed Form 14039 (copy)
  • Government-issued photo ID (copy)
  • Social Security card or SSA correspondence (copy)
  • W-2s, 1099s, or other income documents (copies)
  • Police report and FTC Identity Theft Report (copies)
  • Proof of mailing/tracking numbers

Common mistakes that delay resolution

  • Waiting to respond to the IRS notice
  • Sending original documents rather than copies
  • Assuming identity theft victims automatically get an IP PIN
  • Exposing yourself to phishing scams by using non-IRS links or phone numbers

Helpful resources and where to go next

Internal guidance from FinHelp:

Final tips to expedite release of your refund

  • Respond immediately and completely to the IRS notice.
  • Provide clear copies of requested documents and include the notice number on all correspondence.
  • Use tracked shipping and keep receipts.
  • Consider retaining a tax pro if the IRS asks for complicated documents or if multiple returns/years are involved.

Professional disclaimer

This article is educational and based on current IRS procedures as of 2025. It is not legal or tax advice for your specific situation. For personalized assistance, consult a qualified tax professional, enrolled agent, or tax attorney.

Authoritative sources

Internal Revenue Service — Identity Theft Information for Taxpayers (irs.gov)
Federal Trade Commission — Identity Theft (ftc.gov)
Consumer Financial Protection Bureau — Identity Theft resources (consumerfinance.gov)