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FAQ5 min readMar 17, 2026
How the IRS Handles Identity Theft
Tax-related identity theft is one of the fastest-growing crimes. Here's how to recognize it, what to do if it happens to you, and how to prevent it.
IRS Identity Theft
What Is Tax-Related Identity Theft?
When someone uses your Social Security number to file a fraudulent tax return and claim your refund.
Signs of Tax Identity Theft
- The IRS rejects your e-filed return because one was already filed with your SSN
- You receive an IRS notice about income you didn't earn
- You receive a W-2 or 1099 from an employer you never worked for
- IRS records show wages from unknown employers
What to Do If You're a Victim
- File Form 14039 (Identity Theft Affidavit) with the IRS
- File your legitimate return by mail
- Notify your state tax agency
- File a police report
- Report to FTC at IdentityTheft.gov
- Check your credit reports
IRS Identity Protection PIN (IP PIN)
- A 6-digit number that prevents others from filing a return with your SSN
- Anyone can now opt into the IP PIN program at IRS.gov
- Highly recommended — you must include your IP PIN when filing
IRS Resolution Process
Resolving identity theft with the IRS can take:
- 6–120 days to resolve depending on complexity
- The IRS Identity Protection Specialized Unit handles cases
Prevention Tips
- Don't share your SSN unnecessarily
- Use strong, unique passwords for tax software accounts
- File your return early (before a thief can file first)
- Opt into the IRS IP PIN program
Identity theft victim or concerned about protection? K2 Tax Solutions can help you navigate the IRS resolution process.