When you receive a tax identity theft letter, act quickly and methodically — responding well can stop further fraud and speed recovery. Below are clear, prioritized steps I use with clients when this happens.

1) Read the letter and verify authenticity

  • Note the notice number, date, and any deadlines. Do not ignore the deadline (many IRS notices ask for a prompt reply).
  • Confirm the letter is real: genuine IRS letters reference specific notice codes and direct you to irs.gov/identity-theft or the IRS notice lookup (IRS: Taxpayer Guide to Identity Theft). Never give personal data to callers who contact you first.

2) Follow the notice instructions exactly

  • If the letter instructs you to complete IRS Form 14039 (Identity Theft Affidavit), fill it out and submit as directed (the form remains the IRS tool for reporting tax-related identity theft). If the notice asks you to verify identity with specific documents, gather and send them per the instructions.
  • If the letter requires no immediate form but says your return was rejected or a refund was issued to someone else, follow the steps in the notice and keep copies of everything.

3) Gather documentation you’ll likely need

  • A copy of the IRS letter and any related IRS notices.
  • Government photo ID (driver’s license, passport) and proof of Social Security number (Social Security card or SSA letter) if requested.
  • A copy of your filed tax return (if you filed) and any supporting income documents (W-2s, 1099s).
  • Proof of address (utility bill, bank statement).

4) File Form 14039 and report identity theft beyond the IRS when appropriate

  • Use Form 14039 to report identity theft to the IRS if your SSN was used on another return or your refund was stolen. The IRS has current instructions at irs.gov/identity-theft (IRS: Taxpayer Guide to Identity Theft).
  • File an identity theft report with the Federal Trade Commission at IdentityTheft.gov and consider filing a police report if you can identify where the theft occurred (FTC: IdentityTheft.gov).

5) Protect your credit and accounts

  • Place a fraud alert or credit freeze with the three major credit bureaus (Equifax, Experian, TransUnion). A freeze prevents new accounts from being opened in your name.
  • Review your credit reports for new accounts or inquiries and dispute unauthorized items.

6) Consider an IP PIN and enhanced IRS verification

  • Enroll in the IRS Identity Protection PIN (IP PIN) program if eligible. An IP PIN adds a layer of security to prevent others from filing using your SSN.
  • If the IRS requests in-person or documentary proof of identity, follow the guidance in the notice and the IRS identity verification resources (see internal link below).

7) Monitor and document everything

  • Keep a dated folder of all letters, forms mailed (use certified mail when sending originals), emails, phone calls (note dates, names, and reference numbers).
  • Expect resolution to take weeks to months depending on the case complexity — stay persistent.

When to call a professional

  • If the IRS case is complex (e.g., large refunds issued to an imposter, multiple years affected, or identity theft linked to tax liability), consult a tax attorney, CPA, or an identity-theft specialist. In my practice I’ve seen cases resolved faster when a tax professional coordinated with the IRS Identity Protection unit and the taxpayer’s banks.

Common mistakes to avoid

  • Don’t ignore the letter or assume it’s a scam without checking the IRS site.
  • Don’t provide extra personal information to unsolicited callers. Verify any contact through official IRS channels first.
  • Don’t delay filing Form 14039 if the notice or your circumstances suggest your SSN was used by someone else.

Helpful internal resources

Authoritative sources

Professional disclaimer
This article is educational only and does not constitute tax, legal, or financial advice. For personalized guidance, consult a qualified tax professional or attorney.