Contributed by: KristineS, FreeTaxUSA Agent, Tax Pro
Identity theft is an increasing problem for many Americans. If you’ve been a victim of identity theft in any circumstance, you’ll want to consider taking some of the actions we’ll outline below regardless of whether you’ve had issues filing your tax return.
In some circumstances, the IRS may proactively identify identity theft and alert you by sending you LTR 4883C or LTR 6330C. If you receive one of these letters, follow the instructions carefully.
Before taking some of the action steps below, look for warning signs there may be an identity theft issue. Besides receiving one of the letters mentioned above, the biggest warning sign that you or a family member may be a victim of tax return related identity theft is that your return is rejected by the IRS because you, your spouse, or one or more of your dependents’ SSNs has been used on another tax return. If this is the case, consider the following possibilities and check to make sure there’s not a more simple explanation for the e-file rejection.
- If the SSN that's been used is yours, make sure you didn’t inadvertently file your tax return somewhere else and not remember.
- If you're in college, your parents may have appropriately claimed you on their tax return if you’re under 24 and still a college student.
- Similarly for a spouse, in some cases a spouse may have accidentally filed married filing separately without conferring with their significant other. If the spouse is a college student under the age of 24 and has been claimed as a dependent, check with the spouse’s parents as it’s likely a mistake that needs to be corrected.
- If a dependent has been claimed as dependent child on another tax return, consider whether there’s a possible misunderstanding with the other parent. Who claims the dependent for that year? If possible, check with the other parent to see if they claimed the child. If the other parent did claim the child incorrectly, that parent would need to amend their tax return by removing the dependent first before you can file your tax return with that same child.
- If the rejection says your dependent’s SSN was used on another tax return, and they're in college, check with your dependent to make sure they marked they can be claimed as a dependent on another return.
After ruling out these and other possibilities for the e-file rejection, and it looks like real identity theft has occurred, you’ll need to take the following steps to get your tax return filed with the IRS, plus consider additional steps to stop any damage to your finances and credit.
- Call the IRS Identity Protection Specialized Unit at 1-800-908-4490. This unit is specifically set up to assist individuals who have become victims of identity theft.
- Mail your tax return with Form 14039 IRS Identity Theft Affidavit. Keep a copy for your records. Using a tracking service such as Certified or overnight mail gives you proof of receipt at the IRS.
- File a police report. This can be a good idea for documentation purposes.
- Visit the Federal Trade Commission website IdentityTheft.gov and report the identity theft. This site provides a step-by-step recovery plan, which includes helping you generate a personalized identity theft recovery plan.
- Check your credit reports from all three major credit bureaus (Equifax, Experian, and TransUnion) for any unauthorized accounts or activity. You can obtain a free credit report from each bureau once a year at AnnualCreditReport.com. Consider placing a fraud alert or security freeze on your credit reports to prevent further unauthorized activity.
Once your information has been received at the IRS, the ID Theft Victim Assistance Program will be assigned to handle your case. When the IRS has completed their work, which may take a minimum of 120 days, you’ll be assigned an annual Identity Protection (IP) PIN which is mailed in December to each member of your family that is an ID theft victim. You must include the IP PIN when you file your tax return. For detailed information, please visit the IRS’ ID Theft website.
