If the IRS discovers that a taxpayer has become the victim of identity theft before the individual notices, certain actions will be taken. Learn more about this, and other situations relating to identity theft and the IRS, in this guide.

In some situations, the IRS will discover an ID theft before the taxpayer recognizes it.  When this occurs, the IRS will issue one of the two following letters indicating they need to verify certain tax return information with the taxpayer. Although the letters do not say that suspicious or multiple returns have been filed using the taxpayer’s information, this is a pretty good indicator that the taxpayer’s ID has been compromised.  The taxpayer should respond to the IRS immediately at 800-830-5084. 

Taxpayer should have a copy of the most recently filed return and the one for the preceding year.  The taxpayer will be asked questions about the data included on those two returns.  Birth date, SSN or ITIN, and contact information will need to be available. 

If a client believes they are at risk due to a lost or stolen purse or wallet, questionable credit card activity or credit report, they should contact the IRS Identity Protection Specialized Unit at 800-908-4490 (Monday - Friday, 7 a.m. - 7 p.m. local time; Alaska and Hawaii follow Pacific time). The client should also complete and file Form 14039 – IRS Identity Theft Affidavit. If a business entity, trust, estate or tax-exempt organization suspects that it is the victim of identity theft, Form 14039-B can be used to report suspected ID theft to the IRS. Note: Form 14039 should not be filed if the client received Letter 5071C or 6331C.

The following actions are recommended:

   o Equifax – www.equifax.com, 800-525-6285

   o Experian – www.experian.com, 888-397-3742

   o TransUnion – www.transunion.com, 800-680-7289

Close any accounts that have been tampered with or opened fraudulently.