When Criminals File First: Navigating Identity Theft with Form 14039

 

Imagine you’ve filed your tax return, and you’re eagerly anticipating your refund, only to discover someone else has already claimed it. This nightmare scenario is a reality for millions of Americans each year, as tax-related identity theft continues to rise.  

With nearly 2 million reports of tax-related identity theft annually and a backlog of almost 500,000 cases, the IRS is fighting back with new tools and strategies to protect taxpayer’s identities and private information. A leading weapon in this battle is IRS Form 14039, the Identity Theft Affidavit 

If you suspect your personal information has been used to file a fraudulent tax return, you should consider filing IRS Form 14039, the Identity Theft Affidavit.  

Signs your taxpayer identity might be compromised 

The IRS advises taxpayers to be vigilant for several signs that may indicate potential identity theft. Here are some key indicators to watch for: 

  1. Unexpected IRS Notices: Receiving a letter from the IRS about a suspicious tax return that you did not file  
  2. E-Filing Issues: If you cannot e-file your tax return because of a duplicate Social Security number, it could mean someone else has already filed using your information 
  3. Unrequested Tax Transcripts: Getting a tax transcript in the mail that you did not request  
  4. Unauthorized Account Activity: Notices from the IRS about an online account being created in your name, or your existing account being accessed or disabled without your action 
  5. Unexpected Tax Bills or Refund Offsets: Receiving a notice that you owe additional tax, have had a refund offset, or face collection actions for a year you did not file a tax return  
  6. Unfamiliar Employer Information: IRS records showing wages or other income from an employer you did not work for  
  7. Unrequested Employer Identification Number (EIN): Being assigned an EIN that you did not request 

 A common indicator of identity theft is if you receive an unexpected “CP303 notice” from the IRS. The IRS will send you this notice if your personal information was used to access an IRS online service. if you did not access the service, you should immediately call the number provided on the notice. This will allow the IRS to verify your identity and disable any unauthorized access to your account. (If you received a CP303 notice and you did access the IRS service, you don’t need to take any further action.)  

 How to file Form 14039 

If you have been the victim of identity theft you can take the next step and submit Form 14039 to alert the IRS to potential identity theft, enabling the agency to take necessary actions to secure your account and prevent further misuse. The form can be submitted online, by mail, or by fax, and it requires detailed information about the victim and the suspected identity theft incident. 

 

 Top portion of Form 14039 (May 2024) 
 


Here are some brief instructions for completing Form 14039. These instructions are based on the May 2024 version of the form. The IRS frequently updates their forms, so be sure to use the latest form, which should be available on the IRS website. 

If you need help, take a look at the instructions on the form, consult the IRS identity theft resources at the end of this article, or contact your tax preparer or accountant.  

1. Download Form 14039 from the IRS website or complete the form online 
    2. Section A - Identify the situation you’re reporting 
        • Check the appropriate box(es):  
          • Submitting for yourself 
          • Responding to an IRS notice 
          • Submitting on behalf of a dependent 
          • Submitting on behalf of another person 
      3. Section B - Describe the impact of the identity theft  
        • Check all applicable boxes indicating how your information was misused 
        • Provide a detailed explanation of the identity theft issue  
          • Include when you became aware of it 
          • Describe how it impacts your tax account 
          • Note relevant dates 
      4. Section C - Personal Information of identity theft victim  
        • Fill in complete contact details for the identity theft victim. This could be someone other than the person completing the form. 
      5. Section D - Tax account information 
        • Indicate last tax return filed 
        • List tax years potentially impacted by identity theft 
      6. Section E - Signature 
        • Sign and date the form under penalty of perjury 
        • Confirm all information is true and complete 
      7. Section F (if filing for someone else) 
        • Complete if filing on behalf of someone else 
        • Provide representative information 
        • Check appropriate representative status box 
        • Attach required documentation (court papers, power of attorney, etc.) 

       

      Submission options: 

      • Fax: 855-807-5720 
      • Mail: Department of the Treasury, Internal Revenue Service, Fresno, CA 93888-0025 

       

      Additional recommendations: 

      • Do not submit a new Form 14039 if you've already filed Form 14039 for this incident 
      • Use only one submission method 
      • Provide clear, readable copies of supporting documents 
      • Keep copies of everything you submit 

       

      Working with your tax preparer or accountant 

      You should also notify your tax preparer or accountant right away if you’re the victim of identity theft. They can help you respond by taking some or all of the following steps: 

       

        1. Recognize identity theft: Your tax preparer can help you recognize identity theft and request documentation from the IRS and other sources to verify it.
        2. File Form 14039: The tax preparer can help you complete and submit the IRS Identity Theft Affidavit (Form 14039) on your behalf.  

        3. File your tax return: Your return may need special handling in the event of identity theft. Your preparer can work with you to continue to file your tax return. In some cases you may not be able to file electronically, and may need to file a paper return. 

        4. Respond to IRS notices: If you receive any notices from the IRS regarding suspicious activity or a duplicate return, your tax preparer can help you understand and respond to these notices. 

        5. Use an IP PIN: Your tax preparer can help you apply for an Identity Protection Personal Identification Number (IP PIN) from the IRS. This six-digit number adds an extra layer of security to your tax account and helps prevent fraudulent tax filings. 

        6. Business identity theft: Although less common, business identity theft does occur. If your business has been targeted, ask your tax professional whether you should complete Form 14039-B, Business Identity Theft Affidavit. 

        7. Implement identity safeguards: Your accountant or tax pro can make suggestions on how you can strengthen protection of your private data 

         

        Conclusion 

        Identity theft is a growing concern for taxpayers. If you suspect identity theft, you should take action quickly to protect your personal information, and avoid ongoing threats that could complicate filing you tax return, delay your refund, and negatively impact your credit. 

        By understanding when and how to file Form 14039 and taking advantage of programs like the IP PIN, you can better safeguard your personal information, notify the IRS of your situation, and avoid further misuse of your information. A tax professional can provide guidance if you’re a victim of identity theft. They can help you file necessary forms, respond to IRS notices, and apply for an IP PIN. 

        Protecting your identity requires vigilance and proactive measures. By understanding the signs of identity theft and knowing how to respond, you can reduce your risk of becoming a victim.  

         

        Additional tax-related identity theft resources 

         

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