Quick overview

If the IRS flags your account for identity theft, you’re likely to receive a notice or experience a rejected e-file because a return using your Social Security number already exists. The IRS flag is a protective step, not an accusation. Acting fast reduces processing delays, helps protect your refund, and limits downstream identity and credit damage.

This article explains a practical, step-by-step plan I use in my work with clients, backed by IRS and federal guidance. It also points to resources you’ll need, suggested documentation, and realistic timelines so you can be prepared.

Immediate steps to take (first 24–72 hours)

  1. Don’t ignore the notice. Read it carefully and verify it’s from the IRS. Scammers sometimes imitate IRS letters; genuine IRS notices include a notice number and a contact phone number. If uncertain, call the IRS Identity Protection Specialized Unit (see IRS contact info below) rather than any phone number on a suspicious email or text.

  2. Report tax-related identity theft to the IRS using Form 14039, Identity Theft Affidavit, if instructed. The IRS uses Form 14039 to confirm identity-theft claims and to begin recovery. You can find the form and filing instructions at the IRS site: https://www.irs.gov/forms-pubs/about-form-14039 (IRS). If a return you did not file caused your e-file to be rejected, the IRS advises submitting Form 14039.

  3. Create an evidence file. Save the IRS notice, any reject messages from your tax software, copies of police reports, credit-report screenshots, and communications with the IRS. Keep originals where possible and make scanned backups.

  4. File an FTC report at IdentityTheft.gov. The Federal Trade Commission (FTC) keeps a centralized recovery plan and a report that many agencies and creditors will accept as proof of identity theft: https://www.identitytheft.gov/ (FTC).

Next steps to secure your tax account and credit (first week)

  • Get an Identity Protection PIN (IP PIN) from the IRS if you qualify or are approved. An IP PIN is a six-digit number the IRS issues to confirmed identity-theft victims; it helps prevent fraudulent e-filed returns under your SSN. Learn more and apply via the IRS IP PIN tool: https://www.irs.gov/identity-theft-fraud-scams/get-an-identity-protection-pin (IRS).

  • Place a fraud alert or credit freeze with the three major credit bureaus. A fraud alert makes it harder for a crook to open new accounts; a credit freeze blocks most new credit inquiries entirely. The Consumer Financial Protection Bureau explains the difference and how to proceed here: https://www.consumerfinance.gov/ (CFPB). You can also use IdentityTheft.gov to place fraud alerts and to generate letters to send to bureaus.

  • Order all three credit reports and review them for unfamiliar accounts or inquiries. Under federal law you can request free reports at https://www.annualcreditreport.com/. Look for new accounts, changes in address, or hard inquiries you didn’t initiate.

  • Consider filing a police report. This is often required by creditors and can support your FTC report and insurance claims. Request a copy and include the report number in communications with the IRS and creditors.

How to handle your tax filing while the IRS investigates

  • If the IRS rejects your e-file because someone filed using your SSN, follow the instructions on the rejection notice. Often the IRS will ask you to complete and mail Form 14039 and to file a paper tax return with documentation.

  • If you already received a notice saying the IRS identified suspicious activity, follow the notice’s instructions carefully. The notice will tell you whether to reply by mail, to call a specific IRS unit, or to use a secure online pathway.

  • Do not try to e-file a replacement return before the IRS clears the issue—doing so will likely result in another rejection. Instead, file a paper return if the IRS requires it and attach any requested identity documentation.

  • If the IRS places an identity theft indicator on your account, it may temporarily block electronic access to your account or prevent e-filing. You will still be able to file a timely return by following IRS directions for flagged accounts.

Documentation the IRS commonly requests

  • A completed Form 14039 (Identity Theft Affidavit) where required.
  • A copy of the IRS notice you received, or the reject/error messages from your tax software.
  • A copy of your government-issued photo ID (driver’s license or passport) and proof of your current address (utility bill, bank statement).
  • A police report or FTC IdentityTheft.gov report to support criminal identity-theft claims.

Keep copies of every piece of paper you send and track delivery via certified mail when possible.

Timeline and what to expect

There’s no fixed timetable, but IRS identity-theft cases commonly take several months to resolve. Many cases require 60–180 days; more complicated cases or those that require coordination with other agencies will take longer. The IRS Identity Protection Specialized Unit manages tax-related identity-theft claims and can provide case status—expect periodic letters asking for documentation or confirming steps taken (see IRS Identity Theft resources: https://www.irs.gov/identity-theft-fraud-scams). Be patient but persistent: document every contact and ask for a case ID or reference number in each conversation.

Additional recovery and prevention steps

  • Enroll in credit monitoring if you don’t already have it. Some identity-theft victims qualify for free monitoring from the IRS or their tax preparer.

  • Update passwords and enable multi-factor authentication on financial, tax-prep, and email accounts. Use a password manager to generate and store unique passwords.

  • Consider placing an extended fraud alert or credit freeze if you see signs of broader fraud. Contact the three credit bureaus: Equifax, Experian, and TransUnion.

  • If your Social Security number has been misused for employment, contact the Social Security Administration to report misuse and request a review of earnings records.

When to get professional help

If the identity theft is complex — for example, multiple fraudulent returns, tax debt assessments you did not incur, or identity theft tied to criminal activity — consult a tax professional who specializes in identity-theft recovery or a tax attorney. In my practice helping clients with tax-related identity theft, a specialist saved time and reduced errors by coordinating the IRS paperwork, police reports, and credit-repair steps.

Common mistakes to avoid

  • Don’t ignore initial IRS notices.
  • Don’t give personal information in response to unsolicited phone calls, emails, or texts claiming to be the IRS. The IRS will almost never initiate contact by email or text to request personal data.
  • Don’t assume the issue will go away; identity theft often spreads if unaddressed.

Helpful resources and where to go next

For practical how-to guides on reestablishing your tax account and protecting credit, see our related FinHelp articles: “Steps to Recover Your Tax Account After Identity Theft” (https://finhelp.io/glossary/steps-to-recover-your-tax-account-after-identity-theft/) and “Identity Theft and Your Credit Report: Steps to Recover and Protect Yourself” (https://finhelp.io/glossary/identity-theft-and-your-credit-report-steps-to-recover-and-protect-yourself/).

Short FAQ

  • How long will the IRS take to resolve an identity-theft flag? Response time varies; many cases take several months (often 60–180 days) but timelines depend on documentation and case complexity.

  • Can I still file taxes while flagged for identity theft? Yes. Follow IRS instructions. You may need to file a paper return and provide identity documents or Form 14039.

  • Will the IRS remove fraudulent tax liabilities? If you’re a confirmed identity-theft victim and the IRS determines the tax liability was fraudulent, they will remove or correct those entries. Maintain documentation and stay in contact.

Professional disclaimer

This article is educational and not individualized tax or legal advice. For guidance tailored to your situation, consult a credentialed tax professional or attorney. The IRS and federal agencies listed are authoritative sources for current procedures.

Author note: In my 15 years helping taxpayers, prompt documentation and using the IRS IP PIN process when eligible have been the fastest ways to stop repeated fraud. Keep thorough records — they shorten resolution time and protect you if third parties challenge your claim.