If you find out that you are a victim of tax identity theft, you take these two critical actions immediately:

1. Contact the IRS Identity Protection Specialized Unit. You’ll use the IRS Theft Affidavit Form 14039, which alerts the agency that your identity has been stolen.
2. Contact the Federal Trade Commission (FTC).

Can identity theft affect my tax refund?

If you’re a victim of tax identity theft, the IRS may reject your legitimate tax return because it’s flagged as a duplicate. Fortunately, you’ll still be able to file taxes and receive your refund once you get the situation sorted with the government.

How does the IRS detect identity theft?

Often, the IRS Taxpayer Protection Program identifies a suspicious tax return bearing your name and SSN and will send you a notice or letter. You may receive a Letter 4883C from the IRS asking you to verify your identity within 30 days. Follow the letter’s instructions to verify your identity.

What happens after you report identity theft to the IRS?

The IRS will work to correct your stolen identity refund fraud, issue your refund (if you’re getting a refund), and protect you from future tax identity theft. This process can take as little as three months or as long as a year, depending on your circumstances.

Do you get money back from identity theft?

In the event of the theft or unauthorized use of your credit card, federal law states that you’re liable for a maximum of $50 in fraudulent charges. However, if you report the loss of your card before any fraudulent charges appear, you’ll bear no financial responsibility whatsoever.

How long after you verify your identity do you get your refund?

If we successfully verify your identity, we’ll process your tax return. It will take up to 9 weeks to receive your refund or credit any overpayment to your account.

Why did I get a 5071C?

If the IRS suspects that a tax return with your name on it is potentially the result of identity theft, the agency will send you a special letter, called a 5071C Letter. This letter is to notify you that the agency received a tax return with your name and Social Security number and it believes it may not be yours.

How is identity theft related to tax filing?

What is tax-related identity theft? Tax-related identity theft occurs when someone uses your stolen Social Security number to file a tax return claiming a fraudulent refund. You may be unaware that this has happened until you efile your return and discover that a return already has been filed using your SSN.

When do you know you are a victim of identity theft?

You may not know you’re a victim of identity theft until you’re notified by the IRS of a possible issue with your return. You get a letter from the IRS inquiring about a suspicious tax return that you did not file.

How to protect your identity from identity thieves?

The IRS, state tax agencies and the tax industry need your help to fight back against identity thieves. See Taxes. Security. Together. Use security software and make sure it updates automatically; essential tools include virus/malware protection and a firewall. Use encryption programs to protect sensitive digital data.

Are there any new safeguards for identity theft?

For 2018, the IRS, the states and the tax industry joined together to enact new safeguards and take additional actions to combat tax-related identity theft. Many of these safeguards will be invisible to you, but invaluable to our fight against these criminal syndicates.