Tax identity theft happens when someone uses your Social Security number to file a fake return and claim a refund. It is often discovered when your own return is rejected.
Signs
- Your e-filed return is rejected because a return with your number was already filed.
- You receive an IRS notice about a return you did not file.
- You get a refund or transcript you did not request.
- You receive wage or employment notices for jobs you did not hold.
What to do
- Report identity theft to the Federal Trade Commission at IdentityTheft.gov.
- File an IRS identity theft affidavit as the IRS instructs, and mail your paper return if needed.
- Respond to IRS notices promptly.
- Place a fraud alert or credit freeze with the credit bureaus.
- Consider an Identity Protection PIN from the IRS.
- Keep copies of everything.
What to expect
Resolution can take months. The IRS may require identity verification. Check state tax agencies too, since fraud can be filed there.
Prevent it
- File early.
- Protect your Social Security number and mail.
- Use strong passwords and multi-factor authentication for tax software.
- Beware of phishing emails and calls claiming to be the IRS.
Frequently asked questions
Will the IRS call me demanding payment?
Generally no. First contact is typically by mail.
Can I still get my refund?
Yes, once identity issues are resolved.