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 identify identity theft and alert you to it by sending you letter LTR 4483C or LTR 6330C. If you receive one of these letters, follow the instructions in the letter.
Before taking some of the actions below, look for warning signs that there may be an identity theft issue. Besides receiving one of the letters mentioned earlier, 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 because yours, your spouse’s, or one or more of your dependents’ SSN has been used on another return. If this is the case, consider the following possibilities and check to make sure there’s no simpler explanation for the e-file rejection:
- If the SSN that has been used is yours, make sure you didn’t inadvertently file your return somewhere else without realizing it. Further, if your SSN is being claimed as a dependent, your parents may have legitimately claimed you if you’re under 24 and still a college student.
- Similarly for a spouse, in some cases a spouse may have accidentally filed married 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 on another return, consider whether there’s a possible misunderstanding with the other parent as to who claims the dependent for that year and check with them to see if they claimed the child. If they claimed the child incorrectly, they would need to amend, and you would need to mail your return after they amend or maybe leave the dependent off your return for that year.
- If the rejection just says the dependent’s SSN was used on another return, check with your dependent to make sure that if they filed, they marked that they can be claimed as a dependent on another return.
After considering other possibilities for the e-file rejection or other warning signs for identity theft and it looks like identity theft has occurred, you’ll need to take the following steps to get your return filed and to prevent the tax issue from recurring for future years and any additional 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. They can guide you through the necessary steps.
- Mail your return with Form 14039 IRS Identity Theft Affidavit.
- 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, 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 you’ll need for whichever member of your family was an identity theft victim to file your return. For detailed information, please visit the IRS’ ID Theft website.