Has someone else filed taxes in your name? While it may seem like a simple mistake, it’s often a sign of a larger problem. You may be the victim of tax identity theft.
Tax fraud occurs when someone uses your information like a Social Security Number (SSN) to file a return and claim a refund before you do. In some cases, they may even open credit cards or apply for loans using your identity. This can result in the IRS freezing your account, delaying your refund, or even launching an investigation.
Since the government is involved, resolving this type of fraud is time-consuming and legally complex. To protect yourself, you need to:
- Understand the warning signs of identity theft.
- Take legal action.
- Work with a qualified attorney to restore your identity.
With the right support and quick action, it is possible to stop the fraud and take back control of your finances.
Red Flags
Many people don’t discover they are victims of identity theft until they receive a letter from the IRS. However, there are warning signs that someone filed taxes in your name or is using your social security number fraudulently you can watch out for.
Common red flags include:
- Receiving a letter about a return you never filed.
- Getting a tax transcript you didn’t request.
- Notices saying the IRS is taking collection action.
- Your e-filed return is rejected because someone else already submitted with your social security number.
You might also get fake IRS emails notifying you that:
- An IRS account was created in your name.
- Your IRS online account was locked or accessed without your knowledge.
- You cannot file your return electronically.
- Your IRS records show wages you never earned, which can lower your eligibility for state or federal benefits.
If any of this sounds familiar, your personal information may have been compromised. Remember: The IRS will never call to threaten lawsuits, request personal details through text, email, or social media, or ask for your PIN number outside of the proper forms.
Who to contact?
If you’re a victim of tax identity theft, there are steps and legal actions you can take to regain your financial information. Here’s what to do first:
- Contact the IRS Identity Protection Specialized Unit.
- Respond to Letter 5071C or 6331C.
- Submit IRS Form 14039 (Identity Theft Affidavit).
The 5071C or 6331C letters are official IRS notices requesting identity verification. If you receive one, do not submit Form 14039 unless instructed. Instead, follow the letter’s specific instructions. If the fraud is confirmed, then complete form 14039.
It’s important to note that due to a major case backlog, the IRS can take months or even years to resolve these cases. According to a 2024 Annual IRS report, the average time it took the IRS’s Identity Theft Victim Assistance Unit to resolve theft cases was two years.
To protect yourself further, you can:
- Report fraud to the FTC at identitytheft.gov.
- Contact your state’s tax agency.
- Place a fraud alert on your credit report at Equifax, Experian, or TransUnion.
- Notify banks and lenders.
- Work with a tax fraud expert.
When identity theft happens, your credit score, financial standing, and peace of mind are at stake. An experienced accountant can help address IRS issues, but a dedicated identity theft attorney in Los Angeles can provide critical support when navigating the legal process.
At Brennan Law, we help clients protect their identity, resolve tax fraud cases, and recover damages caused by identity theft. Don’t face this alone — contact us for a consultation today.