Learn what tax identity theft is, what you can do to guard against it, and steps you can take to report and recover if it happens to you.
 
 

What Is Tax Identity Theft?

Tax identity theft is when someone uses your Social Security number to steal your tax refund or for work. People often discover tax identity theft when they file their tax returns.

 

How To Protect Yourself from Tax Identity Theft

Taking steps to protect your personal information can help you avoid tax identity theft. Here’s what you can do to stay ahead of identity thieves.

Protect documents that have personal information

Keep your tax records and Social Security card in a safe place. When you decide to get rid of your tax records, shred them. If you don’t have a shredder, look for a local shred day.

Protect your information from scammers online and on your phone

If you use tax preparation software like TurboTax, TaxAct, or TaxSlayer, use multi-factor authentication. Multi-factor authentication offers extra security by requiring two or more credentials to log in to your account. The additional credentials you need to log in to your account fall into two categories: something you have — like a passcode you get via text message or an authentication app, or something you are — like a scan of your fingerprint, your retina, or your face. Multi-factor authentication makes it harder for scammers to log in to your accounts if they do get your username and password.

Don’t give your personal information to someone who calls, emails, or texts and says they’re with the IRS. It could be a scammer impersonating the IRS to steal your information or money. If you need to contact the IRS, call them at 1-800-829-1040.

 

What To Do If Someone Steals Your Tax Refund

If someone uses your Social Security number to file for a tax refund before you do your tax return will be rejected by the IRS.    

If you file by mail, the IRS will mail you a letter explaining that they received more than one return in your name. Follow the instructions in the letter.

If you try to submit your tax return online or through a tax preparer, the IRS will reject your tax return as a duplicate filing. If this happens, go to IdentityTheft.gov and report it. IdentityTheft.gov will create your

  • FTC Identity Theft Report
  • IRS Identity Theft Affidavit
  • Personal recovery plan

If you choose, IdentityTheft.gov will submit the IRS Identity Theft Affidavit to the IRS online so that the IRS can begin investigating your case. You can also get the Identity Theft Affidavit (IRS Form 14039) from irs.gov and submit it by mail.

 

What To Do If Someone Uses Your Social Security Number for Work

If someone uses your Social Security number for work, the employer may report that person’s income to the IRS using your Social Security number. When you file your tax return, you wouldn’t have included those earnings because they weren’t yours. But the IRS doesn’t know that. Their records will show you failed to report all your income.

The IRS will mail you a letter explaining you had earnings that you didn’t report. If you get a letter like this from the IRS, follow the instructions in the letter.

Review your Social Security work history if you haven't gotten a letter from the IRS but think someone is using your Social Security number for work.  Create an account at socialsecurity.gov/myaccount. If you find errors, contact your local Social Security Administration office.

 

Other Steps To Take to Report & Recover

Whether someone used your Social Security number to steal your tax refund or for work, learn how to report Identity Theft and what steps you can take to limit the damage by downloading the Federal Trade Commission's Identity Theft/Steps to Recovery Checklist.

 

All or a portion of this content was obtained with permission from the Federal Trade Commission (FTC).