Tax identity theft happens when someone files a return using your Social Security number to steal your refund. Because it strikes once a year and the signs are confusing, here is what to know before tax season arrives.
The classic warning sign: you file your return and the IRS rejects it because a return was already filed under your SSN. Other red flags include IRS notices about wages from an employer you never worked for, or a notice that you owe additional tax on income you never earned.
File early. An early legitimate filing beats a thief to your refund — once your real return is accepted, a fraudulent duplicate gets rejected. Do not wait until April if your documents are ready in February.
Get an Identity Protection PIN. The IRS offers an IP PIN — a six-digit number known only to you and the IRS — that must appear on your return for it to be accepted. It is one of the strongest defenses against tax identity theft, and any taxpayer can opt in.
If you are already a victim, file Form 14039. The IRS Identity Theft Affidavit tells the agency you believe your SSN was misused on a tax return. Attach it to your paper return or submit as directed, and keep a copy.
Respond to every IRS notice. If the IRS writes about suspicious activity on your account, do not ignore it — call the number on the notice (never a number from an unsolicited call or email) and follow their instructions.
And remember the golden rule of tax season: the IRS does not initiate contact by phone, email, or text demanding payment. Threatening calls about arrest warrants or gift-card payments are scams, every time.
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