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Protection From Tax Identity Theft
Protect Your Financial Future from Tax Identity Theft
Tax-related identity theft occurs when someone uses your personal or business information—such as your Social Security number (SSN) or Employer Identification Number (EIN)—to file false tax returns, claim fraudulent refunds, or commit other forms of financial fraud.
Common Signs of Tax Identity Theft
You may be a victim of identity theft if you receive one or more of the following:
IRS Notice
A notice from the IRS indicating a suspicious tax return was filed in your name.
Rejection Notice
A rejection notice when e-filing, stating that your SSN has already been used.
CP01E Notice
A CP01E notice is issued by the IRS when another person may have used your SSN to obtain employment.
Questionable Correspondence
IRS correspondence about income you didn’t earn or accounts you don’t recognize.
SSA Wage / Benefit Records
Wage or benefit records from the Social Security Administration that don’t match your actual employment.
Unauthorized Tax Filings
For businesses, red flags may include unauthorized tax filings using your EIN or notices from the IRS about W-2 forms that you didn’t file.
Need protection from tax identity theft?
Optima Tax Shield can help you with that.
Steps the IRS Recommends for Individuals
If you believe you are a victim of tax identity theft, the IRS recommends taking the following steps:
- File IRS Form 14039 (Identity Theft Affidavit) to notify the IRS of the issue.
- Continue filing your taxes as usual, even if you must do so by paper and respond promptly to IRS notices, particularly letters related to identity verification.
- Enroll in the IRS Identity Protection PIN (IP-PIN) program, which adds an extra layer of security to your future filings.
- Notify the FTC via IdentityTheft.gov, which will generate a personalized recovery plan.
- Inform all three credit bureaus, Transunion, Equifax and Experian, and consider placing a fraud alert or credit freeze on your account.
- For additional help, contact a qualified tax professional.
Steps the IRS Recommends for Businesses
If you believe tax identity thieves have victimized your business, the IRS recommends taking the following steps:
- Submitting Form 14039-B (Business Identity Theft Affidavit).
- Notifying the IRS Business & Specialty Tax Line.
- Monitoring your business’s tax filing history for discrepancies.
- Working with the IRS to correct false records and secure your EIN.
- Enrolling in the Business Identity Theft Case Resolution Process, which includes documentation and follow-up support.
- For additional help, contact a qualified tax professional.
Optima Tax Relief, LLC is a tax resolution firm independent from the IRS.
How Professionals Can Help
While taxpayers and businesses can seek to resolve their tax ID theft case by working with the IRS directly, many find it beneficial to have such problems handled by tax professionals. Tax attorneys and qualified tax professionals can help prepare affidavits, communicate directly with the IRS on your behalf, and monitor the resolution process closely. Professional assistance can be particularly helpful if:
- The issue involves multiple tax years.
- There is financial hardship caused by delays in receiving refunds or credits.
- There’s a need for coordination with multiple agencies (IRS, FTC, SSA, state agencies, etc.)
Protect Yourself with Optima Tax Shield
We’re experts in tax-related identity theft protection and resolution. If you’re a victim of tax ID theft, our team will work directly with the IRS to help expedite the resolution process and provide guidance tailored to your specific situation.
Additional Resources
IRS Identity Theft Central
Visit the IRS Identity Theft Central page for helpful guides, forms and notices and letters to help fight Tax ID Theft.
IRS Publication 5027
IRS ID Theft Guide for Individuals
IRS ID Theft for Businesses
FTC Recovery Tools
Visit the FTC’s IdentityTheft.gov Recovery Tools page.