Can You Claim Identity Theft on Taxes?

Everyone · Explainer · Updated October 1, 2026 · LearnLife Editorial

What Does Claiming Identity Theft on Taxes Mean?

Claiming identity theft on taxes means notifying the IRS that someone has used your Social Security number or personal information to file a tax return without your permission. This type of fraud can result in a thief receiving a refund in your name or blocking you from filing your legitimate return. When you claim identity theft, you are essentially informing the IRS that your tax records have been compromised and requesting their help to correct and protect your account. The IRS uses this claim to flag your account, investigate the fraud, and prevent future misuse. Claiming identity theft is separate from standard tax filing processes and requires special forms and documentation.

For example, imagine you receive a letter from the IRS saying more than one tax return was filed with your Social Security number. Claiming identity theft means responding to this by submitting IRS Form 14039 and providing proof of identity so the IRS can identify the fraudulent return and protect your records. This does not mean you immediately get a refund or compensation but starts the official resolution process.

How Does the IRS Handle Identity Theft on Taxes?

When the IRS receives a report of tax identity theft, it takes specific steps to protect the victim’s account. First, you must submit IRS Form 14039, Identity Theft Affidavit, which formally reports the problem. The IRS then places an identity theft indicator on your tax account to block additional fraudulent filings. They may contact you for proof of your identity, such as a government-issued ID, Social Security card, or tax transcripts from previous years.

After the IRS receives your affidavit, they may ask you to file your tax return by paper mail rather than electronically. For example, if you usually file electronically but get a rejection because your SSN was already used, you’ll print and mail your return with Form 14039 attached. The IRS reviews these paper returns carefully to verify the fraud claim. This process can take weeks or months, depending on the complexity of the case and the IRS workload.

Once the IRS confirms your identity and resolves the fraudulent filings, they will send a letter confirming your account is restored and the fraud cleared. Keep all correspondence from the IRS for your records.

Why Does Tax Identity Theft Matter to You?

Tax identity theft can cause serious and stressful consequences. Your legitimate tax refund may be delayed or lost if a fraudulent return was filed first. You might face IRS notices, audits, or even penalties if the IRS cannot verify your identity quickly. Additionally, identity theft often affects your credit, loan approvals, or other financial transactions if the thief uses your information beyond taxes.

For example, if a thief files a false tax return claiming large deductions or credits, you may receive a notice of underreported income or suspicious activity. This can trigger an audit or require you to spend time and money proving your rightful tax situation. Understanding how to claim identity theft on taxes helps you act quickly, minimizing delays and protecting your financial reputation.

Moreover, resolving tax identity theft helps prevent thieves from repeatedly using your information. The IRS can add extra security measures, like an IP PIN, to your account, reducing future risk.

How Is Tax Identity Theft Different From Other Types of Identity Theft?

Tax identity theft specifically involves the misuse of your personal information to file a fraudulent federal or state tax return. This differs from other common types of identity theft, which might include credit card fraud, bank account takeovers, or medical identity theft. While all involve stealing your personal data, tax identity theft uniquely impacts your tax filings and refunds.

People sometimes confuse tax identity theft with refund fraud. Refund fraud is a form of tax identity theft where the thief files a false return to get a refund. However, tax identity theft also covers other situations, such as someone using your SSN to gain employment or evade taxes.

Another common mix-up is between tax identity theft and tax fraud. Tax fraud generally refers to intentionally falsifying information on your own tax return to avoid taxes. Tax identity theft means someone else is committing fraud using your identity, without your consent.

Knowing these differences helps you communicate clearly with the IRS, law enforcement, and credit agencies and follow the appropriate recovery steps.

What Exact Steps Should You Take If You Suspect Tax Identity Theft?

If you suspect your taxes have been stolen or compromised, take the following specific steps immediately:

1. Do not file electronically if your return is rejected. The IRS may reject your e-filing if someone already filed using your Social Security number. Filing electronically again won’t work until the problem is resolved.
2. Complete IRS Form 14039, Identity Theft Affidavit. This form is your official report to the IRS about tax identity theft. You can download it from the IRS website or request it by phone.
3. File a paper tax return. Attach the completed Form 14039 to your paper return and mail it to the IRS address listed in the form instructions.
4. Contact the IRS Identity Protection Specialized Unit. Call the IRS at the number provided on their website or your IRS notices for help and instructions.
5. Report identity theft to the Federal Trade Commission. Visit IdentityTheft.gov to create a recovery plan and report the fraud to the FTC.
6. Check your credit reports. Request free credit reports from AnnualCreditReport.com and look for unauthorized accounts or inquiries. Consider placing a fraud alert or credit freeze with the credit bureaus if you find suspicious activity.
7. Keep detailed records. Save copies of all forms, letters, and notes from phone calls with the IRS and other agencies for your records and future reference.

Following these steps helps start the IRS investigation and protects you from further fraud.

How Can You Prevent Tax Identity Theft in the Future?

Preventing tax identity theft requires proactive steps to protect your personal information and tax filings:

• File your taxes early. Filing as soon as you have all your documents can reduce the chance a thief files first using your SSN.
• Use strong passwords and two-factor authentication. When filing online or managing tax accounts, strong, unique passwords and added security layers help protect your data.
• Limit sharing your Social Security number. Only provide your SSN when legally required and be cautious about where and how you share it.
• Enroll in the IRS IP PIN program. The IRS offers an Identity Protection PIN, a six-digit number you add to your tax return to verify your identity. This prevents thieves from filing using your SSN without the PIN.
• Monitor IRS notices. Watch for unexpected letters or emails from the IRS about suspicious activity or multiple filings.
• Check your credit regularly. Review credit reports at least once a year to spot identity theft early.

By practicing these habits, you strengthen your defenses against tax-related identity theft.

What Should You Do Next If You Think Your Taxes Were Stolen?

If you believe you are a victim of tax identity theft, act quickly:

• Submit IRS Form 14039 immediately to alert the IRS.
• File your tax return by paper with the affidavit attached if your electronic return is rejected.
• Report the theft to the FTC at IdentityTheft.gov for a tailored recovery plan.
• Contact the IRS Identity Protection Specialized Unit to get personalized guidance.
• Monitor your credit and place fraud alerts if you find suspicious activity.
• Respond promptly to any IRS letters or requests for documentation.

If your case is complex, consider consulting a tax professional or legal advisor experienced with identity theft cases. Staying organized, responding quickly, and following IRS instructions will help resolve your case faster.

For more information, see How to Tell If It Is Identity Theft and Can You Stop Identity Theft? Steps to Protect Yourself.

Frequently asked questions

What is IRS Form 14039 and how do I get it?

IRS Form 14039, Identity Theft Affidavit, is the official form to report tax-related identity theft to the IRS. You can download it from the IRS website or request a copy by calling the IRS. Fill it out carefully with your personal details and attach it to your paper tax return or send it as instructed.

Can I file my taxes electronically if I’m a victim of identity theft?

Usually, no. If the IRS rejects your electronic filing because your SSN was used already, you must file your tax return by paper and include Form 14039. After the IRS clears the fraud, you can resume electronic filing in future years.

What is an IRS Identity Protection PIN (IP PIN)?

An IP PIN is a six-digit number issued by the IRS to confirmed or potential identity theft victims. You enter it on your tax return to verify your identity. This prevents others from filing fraudulent returns using your SSN.

How long does it take to resolve tax identity theft with the IRS?

Resolution times vary and can take from several weeks to months. The IRS must verify your identity, investigate the fraudulent return, and update your account. Responding promptly to IRS requests speeds up the process.

Who else should I notify if my tax identity is stolen?

Besides the IRS, report the theft to the Federal Trade Commission at IdentityTheft.gov, check your credit reports, and consider placing fraud alerts or credit freezes. You may also want to file a police report if your state requires it for identity theft cases.