Guide to IRS Identity Theft Procedures and Legal Recourse

To resolve IRS identity theft, victims should promptly file IRS Form 14039 (Identity Theft Affidavit) to notify the IRS that a fraudulent return was filed using their Social Security number. This starts the process of securing the taxpayer’s account, correcting fraudulent records, and issuing an Identity Protection PIN (IP PIN) to prevent repeat filings. In more complex cases, a Florida Identity Theft Attorney can help guide victims through the IRS response process and protect them from further financial harm.

How IRS Tax Identity Theft Usually Gets Discovered

Most people learn about IRS identity theft when:

• The IRS rejects their e-filed return because one was already filed under their SSN
• The IRS issues a notice about wages from an employer they never worked for
• A refund is delayed, and the IRS requests identity verification
• They receive an IRS letter about suspicious account activity

Regardless of how you discover it, the key issue is the same. The IRS needs a formal report of the identity theft and enough information to separate the real taxpayer from the fraudulent filing.

Step-by-Step IRS Identity Theft Procedures

When a Florida resident discovers tax-related identity theft, they should take the following procedural steps:

Gather and Save the IRS Notice and Supporting Records

If the IRS mailed you a letter, keep it. The notice number and instructions help confirm what the IRS flagged. Save copies of everything you send and receive.

Submit Form 14039 with Identity Documentation

Form 14039 is the IRS’s primary form for reporting identity theft. You generally submit it with:

• A copy of a government-issued photo ID, as instructed, and
• Any IRS correspondence that relates to the suspicious filing

Once the IRS processes the affidavit, it can flag the account for identity theft and begin its review and corrections.

File Your Return Correctly

If a fraudulent return has already posted under your SSN, the IRS may not accept your legitimate return electronically. Many victims must file a paper return with supporting documentation so the IRS can process the correct return and unwind the fraudulent filing.

Complete Any IRS Identity Verification Steps

In some cases, the IRS will require additional identity verification before it finishes processing the legitimate return. If verification does not go smoothly, delays often increase, which makes record keeping and consistency even more critical.

Use the IP PIN for Future Filings

An IP PIN helps prevent someone else from filing tax returns under your SSN in future years. Once issued, the IRS will generally reject returns that do not include the correct IP PIN.

Monitor Your Tax Account for Additional Fraud Indicators

Even after the IRS marks your account, you should monitor for:

• New suspicious filings
• Wage and income transcript issues
• Unauthorized changes to filing history

IRS transcripts are often the clearest indicator of whether the account is clean or still showing problematic activity.

Legal Recourse Beyond the IRS Process

The IRS process is designed to fix your tax account. It does not automatically reimburse you for broader harm, such as financial losses tied to stolen identity, credit denial caused by fraudulent accounts, debt collection efforts for obligations you never incurred, or business or employment fraud connected to your personal information. Depending on the facts, a Florida identity theft attorney from Sharmin & Sharmin P.A. may help pursue legal options such as:

• Disputing and correcting fraudulent credit entries
• Challenging identity-based debt claims and collection activity
• Addressing employment-related identity theft, including wage reporting fallout
• Evaluating whether third-party negligence contributed to the exposure of personal data

In some cases, civil legal claims may be appropriate to recover losses or stop ongoing misuse, especially when the identity theft is part of a larger pattern affecting banking, lending, or employment records.