An IRS notice about possible tax identity theft

Why you may have received this

It is unsettling to learn that a return may have been filed in your name. The IRS has a defined process for this, and the notices you receive are steps in that process rather than accusations.

The most common one is a CP5071-series notice (CP5071, CP5071C or CP5071F). It says a federal income tax return was filed under your SSN or ITIN and that the IRS needs you to verify your identity and the return. If you did not file it, you may be a victim of identity theft. The IRS may also send lettered notices such as Letter 5071C, 4883C or 5747C, which ask you to verify your identity and return, and it will not process the return in question or issue a refund until you respond. Use the number printed on your own notice to find the matching IRS page.

First steps the IRS lists

The IRS Identity Theft Central guide for individuals gives a short sequence. You do not need to do all of it at once, and your notice may point you to a particular step first.

• Stop contact with whoever approached you, and send no money or information.
• Change your IRS Online Account password if you have one.
• Follow the instructions in any IRS letter or notice you received.
• Report the identity theft and follow the recovery steps at IdentityTheft.gov.
• Get an Identity Protection PIN.
• Keep records of letters, calls and emails.
• Keep filing returns and paying tax as usual.
• Check with your state tax agency.

Do you need Form 14039?

Often, no. The IRS says most people do not need to file Form 14039, the Identity Theft Affidavit. It should not be filed if you already reported through IdentityTheft.gov, the IRS already sent you a letter or notice, the theft is not tax-related, or you were told to use or already used the Identity and Tax Return Verification Service. If you verify your return, you generally do not need the form unless told otherwise.

The IRS says to file it if the IRS tells you to, if you cannot use the verification service, or if you want to report possible tax-related identity theft the IRS does not have on file, for example after a data breach. Businesses, trusts, estates and tax-exempt organizations use a different form, 14039-B. Credit card or loan fraud that has nothing to do with your taxes does not belong on this form.

How verification works

If your notice offers online verification, the IRS points to its Verify your return service, which requires signing in to an IRS account. People who did not file can use it to tell the IRS someone may have filed using their information. You can also respond by the phone number on a lettered notice or at a Taxpayer Assistance Center, where the letter allows it. Whichever method you use, the contact information on a CP5071 is for identity and return verification, not for asking about a refund.

Have the notice and your tax records ready before you start. A practical example: a nurse who gets a CP5071 after a data breach at her old employer would gather the notice, her prior-year return and her ID, verify online if the notice allows, and keep a note of the date she did so.

After your claim is confirmed

A CP01 notice generally means the IRS has verified your identity theft claim and placed an indicator on your account. The IRS page says no action is required at that point, and the indicator does not stop you from filing, paying or getting a refund. Future returns will need an IP PIN, which the IRS mails each year, so read your own notice for how it describes this.

An IP PIN is a six-digit number that helps keep anyone else from filing with your SSN or ITIN. Anyone with an SSN or ITIN who can verify their identity is eligible, and the IRS Online Account is the fastest way to get one. A new number is generated each year. The IRS says it will never ask for your IP PIN, so a call, email or text asking for it is a scam.

Expect this to take time

Identity theft cases can take many months to resolve, and the IRS says duplicate forms and status calls cause delays. Its Processing Status for Tax Forms page publishes current information, so check that rather than sending a second copy of anything. If you were told to use the verification service, do that instead of mailing paper.

When a written statement helps, such as explaining that you did not file the return in question, IRS Audit Defense Pro is software that helps you organize your facts and draft a letter you review and send yourself. It does not replace the IRS process, and it is not a law firm or tax professional.

Frequently asked questions

Sources

• IRS: Identity theft guide for individuals
• IRS: Understanding your CP5071 series notice
• IRS: Understanding your CP01 notice
• IRS: Get an Identity Protection PIN
• IRS: How IRS ID theft victim assistance works

Related guides

• Got a CP5071? How identity and return verification worksA CP5071-series notice says a federal income tax return was filed under your SSN or ITIN and the IRS needs you to verify your identity and the return.
• Is This IRS Notice Real? How to Tell Before You RespondThe IRS usually makes first contact by U.S.
• How to get your IRS tax transcriptsThe fastest route is usually your IRS Online Account, where you can view and download transcripts.
• The Taxpayer Advocate Service: Help When an IRS Problem StallsThe Taxpayer Advocate Service is an independent office within the IRS that can help when an IRS problem is causing financial hardship, has gone unresolved for more than 30 days, or the IRS missed a promised date.
• How to respond to an IRS notice, step by stepRead the whole notice, note the notice number and the response date, confirm the letter is genuinely from the IRS, gather your records, decide whether you agree or disagree, then reply in writing by the date on the notice.