What to Do if Someone Files a Tax Return in Your Name

Every year, identity thieves use stolen personal information to file fraudulent tax returns and claim refunds. The IRS flagged nearly 2 million tax returns for potential identity theft during the 2024 filing season, up from 1.1 million in the 2023 season. 

The 2025 tax filing season could see even more instances of tax-related identity theft, considering that 190 million people’s personal information was exposed in the Change Healthcare data breach last year and could be used to file fake returns. That’s why taxpayers need to be aware of the signs of tax fraud and take steps to protect themselves.  

How identity thieves get your personal information

If thieves get your Social Security number, they can use it to file a forged tax return in your name to steal your refund. They can use a variety of tactics to get your personal information: 

• Data breaches at companies and government agencies that have your personal information
• Phone calls, emails and text messages from scammers claiming to be with the IRS and asking for your personal information
• Theft of your Social Security number directly from doctors’ offices, hospitals or other places where you have provided it
• Theft of your wallet or purse
• Theft of your tax documents or financial statements that you’ve tossed in the trash

Warning signs of tax-related identity theft

Identity thieves typically file fraudulent returns early in the tax season before taxpayers have had a chance to file their own returns, according to the IRS. You might not discover that a return has been filed in your name until you file your own return. If you attempt to file a return electronically and it’s rejected, that’s a key sign that a return might have been filed using your Social Security number. 

You also should be on the lookout for these warning signs:

• You receive a Letter 5071C, 4883C or 5747C from the IRS asking you to verify your identity and tax return information. The IRS sends these letters when it identifies suspicious tax returns.
• You receive a refund even though you haven’t filed a return.
• You receive a tax transcript from the IRS that you didn’t request.
• You receive notices  that an IRS online account was created for you or accessed, but you didn’t create an account or access an account that you did create. 
• You receive a W-2 or Form 1099 from an employer you didn’t work for, a 1099-G for unemployment benefits you didn’t apply for or an Employer identification number (EIN) you didn’t apply for.
• You receive a balance due notice, refund offset notice, or have collection actions taken against you for a tax year when you didn’t file a return or receive a refund.

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How to prevent tax-related identity theft

You can reduce your chances of becoming a victim by protecting your personal information. Never share your Social Security number or other sensitive information with anyone who contacts you out of the blue by phone, email or text message. The IRS does not use these methods to contact taxpayers. It will send letters if it needs to reach you. 

Shred documents with sensitive information before throwing them away. Monitor your credit reports and accounts for signs of fraud and misuse of your personal information. A service such as Carefull makes this easy with 24/7 account, credit and identity monitoring as well as up to $1 million in identity theft insurance.

You also can request an identity protection PIN (IP PIN) from the IRS to prevent someone else from filing a tax return using your Social Security number or individual taxpayer identification number. You can get an IP PIN by creating an online IRS account. If you can’t set up an online account, you can file a Form 15227, Application for an Identity Protection Personal Identification Number  if your adjusted gross income on your last return was below $84,000 for Individuals or $168,000 for married filing jointly. Otherwise, you can  make an appointment for an in-person meeting at a local Taxpayer Assistance Center.

What to do if you’re a victim of tax-related identity theft

Act quickly if you believe that you are a victim of tax-related identity theft. The steps you need to take will depend on your situation.

If a tax return you’re trying to file electronically is rejected because a return was already filed using your or your dependent’s Social Security number, you must file a paper tax return within 10 calendar days from the date your electronic return was rejected, according to the IRS Taxpayer Advocate Service. Write “Rejected Electronic Return” and the date of the rejection at the top of the first page of return in red ink. Include Form 14039, Identity Theft Affidavit, with your return.

If you received a letter from the IRS that requests you to verify your identity, verify that it actually came from the IRS by using the online search at IRS.gov. If you received a Letter 4883C, 5071C or 5747C, follow the instructions in the letter. You’ll need to verify your identity with the IRS before it will process your actual return and issue any refund you are owed.

If you get a letter from the IRS stating you didn’t report all of your income and don’t recognize the names of the companies listed in the letter where the income was earned, this could be a sign that someone used your Social Security number to get a job. Follow the instructions in the letter, fill out Form 14039 and send it to the address in the letter.

If you receive a tax transcript you didn’t request, someone might have been using your personal information to try to get a transcript. You can prevent someone from attempting to file a return using your information by requesting an identity protection PIN from the IRS.

Submit a Form 14039 for any other instances of tax-related identity theft. The IRS will send you a letter when your case is resolved, which can take from 120 days to more than a year, according to the IRS. See the Taxpayer Advocate Services’ guide to identity theft or contact the IRS Identity Protection Specialized Unit at 800-908-4490 for more help.

File an identity-theft report with local law enforcement and get a copy of the report in case you need it to support your case that you are a victim of identity theft. Also file a report with IdentityTheft.gov to get customized recovery steps.

Place a security freeze on your credit reports at each of the three credit bureaus—Equifax, Experian and TransUnion. This will prevent identity thieves from opening accounts and lines of credit in your name. Remain vigilant for signs of misuse of your personal information by signing up for credit and identity monitoring, which is included with the Carefull financial safety service.

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