You went to e-file your tax return and got rejected because someone already filed using your Social Security number. Or worse—the IRS sent you a notice saying you owe taxes on income you never earned. Welcome to the unfortunate world of tax identity theft.

The good news: The IRS deals with this constantly and has a clear process. The bad news: It's going to delay your refund and require paperwork. Here's how to handle it.The good news:The bad news:

STEP 1: CONFIRM IT'S ACTUALLY FRAUD

How Do You Know Someone Filed a Fraudulent Return?

• IRS rejection: Your e-filed return is rejected because your SSN was already usedIRS rejection:
• Unexpected notice: IRS says you owe taxes on income you didn't earnUnexpected notice:
• Refund taken: You're expecting a refund but IRS says it was already issuedRefund taken:
• IRS letter 5071C or 4883C: IRS suspects fraud and needs verificationIRS letter 5071C or 4883C:
• Transcript shows unfiled returns: Your IRS transcript shows returns you never filedTranscript shows unfiled returns:

Before You Assume Fraud, Check These:

• Did your spouse file without telling you? (It happens more than you'd think)
• Did your tax preparer already submit it?
• Did you file last year and forget? (Also happens)
• Is the notice for a different tax year?

STEP 2: FILE IRS FORM 14039 IMMEDIATELY

STEP 3: FILE YOUR LEGITIMATE TAX RETURN (ON PAPER)

STEP 4: CALL THE IRS IDENTITY PROTECTION SPECIALIZED UNIT

STEP 5: FILE A POLICE REPORT

Why bother? While not required by the IRS, a police report:Why bother?

• Creates an official record
• Helps if you need to dispute credit issues
• May be required by banks or creditors
• Strengthens your IRS case

How to File a Police Report for Tax Identity Theft:

1. Go to your local police department (in Apple Valley: 14400 Civic Drive)
2. Bring: IRS notice, Form 14039, copy of prior year return
3. Explain you're a victim of tax identity theft
4. Get a copy of the report and report number

STEP 6: PROTECT YOUR CREDIT

STEP 7: MONITOR YOUR IRS ACCOUNT

Get Your IRS Transcripts Regularly

Check your IRS account transcript every few months to catch fraud early:

• Online: IRS.gov → "Get Transcript"Online:
• By mail: Call 800-908-9946By mail:
• What to look for: Returns filed that you didn't file, income from employers you've never worked forWhat to look for:

WHAT HAPPENS NEXT?

The IRS Investigation Process:

1. Assignment (Week 1-4): Your case is assigned to an IRS identity theft specialistAssignment (Week 1-4):
2. Verification (Week 5-12): IRS verifies your identity and investigates the fraudulent returnVerification (Week 5-12):
3. Removal (Week 13-20): IRS removes the fraudulent return from your accountRemoval (Week 13-20):
4. Processing (Week 21-26): Your legitimate return is processedProcessing (Week 21-26):
5. Refund (if applicable): You finally get your refundRefund (if applicable):

Realistic timeline: 6-12 months for the entire processRealistic timeline: 6-12 months for the entire process

YOU'LL RECEIVE AN IP PIN FOR FUTURE FILINGS

After resolving your identity theft case, the IRS will issue you an Identity Protection PIN (IP PIN) —a 6-digit code you'll need to file your tax return each year.Identity Protection PIN (IP PIN)

About Your IP PIN:

• When you get it: Mailed in January each yearWhen you get it:
• What it does: Prevents anyone from filing a return with your SSN without this PINWhat it does:
• How to use it: Enter it on your tax return when filingHow to use it:
• Lost it? Retrieve it at IRS.gov or call 800-908-4490Lost it?

HOW THIS HAPPENS (AND HOW TO PREVENT IT)

Common Ways Tax Fraudsters Get Your Information:

• Data breaches: Equifax, healthcare providers, employers—SSNs leak constantlyData breaches:
• Phishing scams: Fake IRS emails or callsPhishing scams:
• Mail theft: Stealing W-2s from mailboxesMail theft:
• Inside jobs: Dishonest tax preparers or office workersInside jobs:
• Dark web purchases: Buying stolen SSNsDark web purchases:

Prevention Tips:

• File early: Fraudsters can't file if you already didFile early:
• Use IP PIN voluntarily: Even if not required, you can opt in at IRS.govUse IP PIN voluntarily:
• Secure your mailbox: Use a locked mailbox or PO Box during tax seasonSecure your mailbox:
• Shred tax documents: Don't just throw away forms with SSNsShred tax documents:
• Never give SSN over phone/email: The IRS never calls or emails requesting SSNsNever give SSN over phone/email:
• Monitor IRS transcripts: Check 2-3 times per yearMonitor IRS transcripts:
• Protect against W-2 scams: Employers should verify requests for W-2sProtect against W-2 scams:

SPECIAL SITUATIONS

What If You Owe Taxes on the Fraudulent Return?

You are NOT responsible for taxes on income you didn't earn. Once the IRS resolves the identity theft case, any balance due on the fraudulent return will be removed from your account.

What If the Fraudster Used Your Child's SSN?

Same process—file Form 14039 for your child, file their legitimate return (if they have filing requirements), and notify the IRS. The IP PIN program extends to dependents.

What If It's a State Tax Return Fraud?

Contact your state tax agency (California Franchise Tax Board: 800-852-5711). The process is similar but separate from federal.

THE BOTTOM LINE

Tax identity theft is a pain, but it's not the end of the world. The IRS knows how to handle it—you just need to follow their process:

1. File Form 14039 immediatelyFile Form 14039 immediately
2. Paper-file your legitimate returnPaper-file your legitimate return
3. Call the IRS Identity Theft hotlineCall the IRS Identity Theft hotline
4. File a police reportFile a police report
5. Freeze your creditFreeze your credit
6. Be patient—it takes 6-12 monthsBe patient—it takes 6-12 months

And next year? File early, use your IP PIN, and watch your mail.File early, use your IP PIN, and watch your mail.

Remember: You will get your legitimate refund eventually, and you won't be held responsible for the fraud. It's frustrating and time-consuming, but the system works—it just works slowly.Remember: