Immediate actions you can take today to protect your tax refund

Tax-related identity theft happens when a criminal uses your personal information (usually your Social Security number) to file a false federal or state tax return and claim your refund. In my 15+ years helping clients with tax planning and fraud recovery, I’ve seen that rapid, focused action is the difference between a small delay and months of dispute. Below are clear, prioritized steps you can take now, plus what to do if you discover fraud.

1) File your tax return as early as possible

Why it helps: Criminals frequently file fake returns early in the season. Filing your legitimate return promptly reduces the window for someone else to file using your Social Security number. Use a reputable tax preparer or an approved e-file software provider and file electronically with direct deposit to get your refund quickly and securely.

Practical tips:

  • Gather W-2s and 1099s as soon as you receive them. Don’t wait for a paper statement if you already have the electronic copy.
  • If you use a preparer, confirm they use secure file transfer and strong authentication. Ask how they store your documents.

2) Request an IRS Identity Protection PIN (IP PIN)

What it is: An IP PIN is a six-digit number issued by the IRS that must be included on your federal return. It prevents someone else from filing a return using your SSN without that number.

How to get one:

My practice note: I regularly advise clients who’ve been breached or whose information was exposed in data dumps to enroll in the IP PIN program the next filing season. It’s one of the most effective preventative controls the IRS offers.

3) Secure accounts and passwords

Your email and financial accounts are key targets because they are gateways to tax information and account resets.

Action checklist:

  • Use a password manager to create and store long, unique passwords for each account.
  • Enable two-factor authentication (2FA) on email, tax software accounts, bank logins, and the IRS Online Account.
  • Review account recovery options—remove old phone numbers and unused email addresses that could be hijacked.

4) Monitor your IRS account, credit reports, and bank statements

  • Set up or log into your IRS Online Account (https://www.irs.gov/individuals/get-transcript) to check tax records and recent account activity.
  • Check your bank and credit-card statements frequently. Set alerts for large or unusual transactions.
  • Order free credit reports at least annually from AnnualCreditReport.com and consider a credit freeze or fraud alert with the three major credit bureaus (Equifax, Experian, TransUnion). The Federal Trade Commission explains how to place a freeze at https://www.identitytheft.gov.

Why this matters: Early detection lets you act faster—contacting the IRS and financial institutions quickly can limit loss and simplify recovery.

5) Guard against phishing and document theft

Tax fraudsters use phishing emails, malicious links, and fake tax preparers to gather data. Never give sensitive information in response to an unsolicited email or text.

Good practices:

  • The IRS will not initiate contact by email or text asking for SSNs or account information. Learn more at the IRS Identity Theft Central (https://www.irs.gov/identity-theft-central).
  • Shred tax documents and financial statements before disposal.
  • Secure paper records in a locked drawer and use encrypted cloud storage for electronic copies.

6) Choose the right preparer and check e-file security

A negligent or fraudulent preparer can expose you to identity theft risks.

Checklist when selecting a preparer:

  • Confirm the preparer has a Preparer Tax Identification Number (PTIN) and is an enrolled agent, CPA, or tax attorney if complexity requires it.
  • Use preparers who require identity verification and provide secure portals for document upload.
  • Avoid preparers who pressure you to sign blank returns or promise unusually large refunds.

7) If you suspect your refund was claimed by someone else: immediate recovery steps

Signs of tax-related identity theft include e-file rejections because a return with your SSN has already been filed or receiving an IRS notice about multiple returns.

Step-by-step:

  1. Don’t file another tax return immediately. Contact the IRS Identity Protection Specialized Unit (IPSU) at the phone number on the IRS website for victims; follow their instructions. See IRS guidance at https://www.irs.gov/identity-theft-central.
  2. Complete and submit IRS Form 14039, Identity Theft Affidavit, if instructed (the IRS will direct you to this form when a fraudulent return is involved).
  3. Report identity theft at the Federal Trade Commission’s site at https://www.identitytheft.gov—this creates a recovery plan and official identity-theft report you can use with banks and credit bureaus.
  4. Place fraud alerts or freezes on your credit reports with Equifax, Experian, and TransUnion.
  5. Keep careful records of all communications, reference numbers, and dates. Expect resolution to take weeks to months; persistence and documentation speed the process.

My practice example: A client whose return was fraudulently filed received an e-file rejection early in the season. We immediately called the IRS, filed Form 14039 as directed, and enrolled in the IP PIN program for the following year. That combination reduced future risk and ultimately restored the client’s refund after verification.

8) If your state refund may be affected

State tax agencies have different protections. Many states participate in identity theft prevention programs and offer PINs or identity verification. If you suspect state-level refund fraud, contact your state department of revenue immediately. For related state recovery steps, see our article on Recovering a Lost Tax Refund: Tracing and Reissue Steps and our slower-turnaround guide on Identity Theft and Tax Refund Fraud: Prevention and Recovery Steps.

Helpful internal links:

Common mistakes taxpayers make

  • Waiting to file because they are missing a small form or detail. File with what you have and amend later if needed—timely filing beats being second to a fraudulent filer.
  • Using weak or repeated passwords for financial and tax accounts.
  • Assuming identity theft only affects wealthy or public figures—thieves cast a wide net.

When to get professional help

Contact a qualified tax professional or enrolled agent if:

  • You receive IRS notices about multiple returns filed under your SSN.
  • A return in your name is suspected to be fraudulent.
  • You need help completing Form 14039 or working with the IRS IPSU.

In my experience, a tax pro can guide you through IRS correspondence and help prioritize actions like IP PIN enrollment and credit freezes.

Final checklist (what to do in the next 72 hours)

  • If tax season: gather documents and file electronically now.
  • If you suspect fraud: file an identity-theft report at IdentityTheft.gov and contact the IRS per their guidance.
  • Enroll in the IRS IP PIN program if eligible.
  • Secure accounts with unique passwords and enable 2FA.
  • Place a credit freeze or fraud alert if sensitive data is compromised.

Professional disclaimer: This article is educational only and not personalized tax or legal advice. For help tailored to your situation, consult a qualified tax professional, CPA, or tax attorney.

By acting quickly—filing early, enrolling in the IP PIN program when appropriate, securing your accounts, and monitoring both IRS and credit activity—you can greatly reduce the chance that a criminal will claim your refund and make recovery faster if fraud occurs.