How to Respond to Identity Theft Letters from the IRS
Receiving an identity theft letter from the IRS is stressful but treat it as an action item: the IRS is asking you to confirm whether a return filed under your Social Security number was legitimate. Acting quickly reduces the chance of delayed refunds, incorrect tax liabilities, and longer recovery work on credit and tax records. In my 15+ years helping taxpayers, timely, documented responses are the single biggest factor in fast resolutions.
1) Confirm the letter is legitimate
- Check that the notice came by U.S. mail to your address. The IRS will not initiate this type of identity verification primarily by email or text. See the IRS identity-theft guidance for current examples and official links (IRS).
- Common IRS identity‑verification notices include Letter 5071C and Letter 5747C; the notice will tell you how to respond and whether you may verify online or must mail documents. If anything seems off, contact the IRS using the official contact information on the IRS website rather than numbers shown in an email or unknown pages. (IRS identity-theft information: https://www.irs.gov/identity-theft-fraud-scams/identity-theft-information-for-taxpayers)
2) Use the verification option the letter gives you
- Many letters include instructions to verify online using the IRS’s secure verification system. Follow the exact link on the notice or use the official IRS pages linked above. Online verification is usually the fastest route.
- If the letter requires a mailed response, complete and return the requested forms and copies of ID as instructed. The IRS processes paper responses more slowly — it can take weeks to months depending on volume.
3) Gather the right documentation
Typical documents the IRS may request include:
- A copy of the identity theft letter or notice.
- A government photo ID (driver’s license or passport).
- Social Security card or proof of your SSN.
- Copies of prior-year tax returns (signed when possible).
- Form 14039, Identity Theft Affidavit, if the IRS asks you to submit it (Form 14039 is the official affidavit the IRS uses for tax-related identity theft). (IRS Form 14039 info: https://www.irs.gov/forms-pubs/about-form-14039)
4) Take these immediate actions after you respond
- Consider requesting an Identity Protection PIN (IP PIN) from the IRS to stop future fraudulent e-filed returns using your SSN. The IP PIN program and requirements are explained on the IRS site.
- Place a fraud alert or credit freeze with the three major credit bureaus if personal data was exposed.
- Order your free credit reports at AnnualCreditReport.com and review for unfamiliar accounts.
5) Track timing and follow up
- Keep copies of everything you send to the IRS and record dates and any representative names.
- The letter will state a deadline or next steps; if you verify online, you may see immediate confirmation. Paper responses can take longer—follow up if you don’t hear back after the timeframe the letter lists.
Common mistakes to avoid
- Don’t ignore the letter: not responding can lead to refund delays, incorrect assessed tax, or additional holds.
- Don’t provide sensitive information on non‑official websites. Always use IRS-hosted pages and the contact info on the IRS site.
- Don’t assume a mailed letter is the only place fraud shows up—check your IRS account transcript and credit reports for unexplained activity.
When to file Form 14039 and contact other agencies
- File Form 14039 if the IRS confirms a return was filed using your identity, or if instructed by the notice.
- Report non‑tax identity theft to the Federal Trade Commission at IdentityTheft.gov and to your state attorney general if recommended. The Consumer Financial Protection Bureau also has guidance on handling IRS identity theft letters (CFPB). (CFPB FAQ: https://www.consumerfinance.gov/ask-cfpb/what-should-i-do-if-i-receive-an-irs-letter-about-identity-theft-en-2052/)
Resources and related guides
- For steps that trigger identity verification holds and how to clear them, see this in-depth guide: What Triggers an IRS Identity Verification Hold and How to Resolve It — https://finhelp.io/glossary/what-triggers-an-irs-identity-verification-hold-and-how-to-resolve-it/
- If you need a practical checklist for next steps after a tax identity notice, see: What to Do When You Receive a Tax Identity Theft Letter — https://finhelp.io/glossary/what-to-do-when-you-receive-a-tax-identity-theft-letter/
- For rebuilding credit after identity theft, use this recovery primer: Rebuilding After Identity Theft: Credit Report Recovery Steps — https://finhelp.io/glossary/rebuilding-after-identity-theft-credit-report-recovery-steps/
Practical example from my practice
A client received Letter 5071C the week after they attempted to e-file. We verified identity online the day they called, provided a copy of last year’s return, and enrolled them in the IP PIN program. Because we documented every step, their refund delay was limited to a few days rather than weeks.
Professional disclaimer: This article is educational and does not replace personalized tax or legal advice. If you face complex identity theft or see suspicious charges and tax liability, consult a tax professional or attorney.
Authoritative sources: IRS Identity Theft Information (https://www.irs.gov/identity-theft-fraud-scams/identity-theft-information-for-taxpayers); IRS Form 14039 guidance (https://www.irs.gov/forms-pubs/about-form-14039); Consumer Financial Protection Bureau FAQ (https://www.consumerfinance.gov/ask-cfpb/what-should-i-do-if-i-receive-an-irs-letter-about-identity-theft-en-2052/).
