For all taxpayers, it’s a nightmare scenario: someone using your Social Security Number (SSN) to file taxes. In some cases, this could be completely accidental. But more commonly, it could be a sign of identity theft—which is why it’s especially concerning. But how do you know if someone is using your SSN, and what happens if someone uses your SSN to file a tax return? While you should contact the Gordon Law tax attorneys urgently for help presenting your case to the IRS, here’s what you need to know.
How Do I Know if Someone Is Using My SSN?
It’s not always easy to detect if someone is using your SSN. But here’s what could happen if you—or the IRS—suspect someone else is filing taxes under your name.
- IRS Letter 5071C: The clearest sign is if the IRS suspects identity theft and sends you a 5071C notice.
- Rejected Tax Return: If the IRS rejects your tax return due to a duplicate SSN, this is a clear red flag that someone is using your details.
- Unexpected 1099 or W2: If someone uses your employment details, including your SSN, for fraudulent purposes, you might receive a 1099 or W2 you don’t expect.
- Unexpected Background Checks: Similarly, if someone attempts to find work in your name, using your SSN, you might be subject to unexpected background checks.
- IRS Account You Didn’t Open: Have you been notified of an IRS online account you didn’t open? Again, this is a warning sign that someone is actively using your details to file taxes.
What Should I Do if Someone Files a Tax Return Using My SSN?
Thankfully, there are a clear series of steps you should take if you suspect someone filed taxes using your SSN. While your Gordon Law attorney can explain how the process works in more detail, here’s what to do right now to protect yourself.
1. Contact the IRS Immediately
According to the IRS, your first step is to immediately notify them to begin identity theft investigations. This involves completing IRS Form 14039.
Form 14039 is an “Identity Theft Affidavit.” It’s how you declare to the IRS that you suspect someone is using your SSN to complete a fraudulent tax return, or to seek employment illegally. You should also submit proof of your identity, such as a driver’s license.
2. Respond to IRS Correspondence Regarding Possible Fraudulent Activity
Did the IRS contact you regarding possible fraudulent tax returns? Then you could receive one of three letters from the IRS.
- IRS Letter 4883C or 6330C: The IRS received a tax return it suspects may be fraudulent. IRS Form 6330C or 4883C is used to verify your identity (and confirm if the tax return is indeed fraudulent). You may be required to contact the Taxpayer Protection Program Hotline to discuss any next steps.
- IRS Letter 5071C: If you receive IRS Letter 5071C, you may be required to complete an online identity theft verification process. The letter will include instructions to follow if completion of any identity checks are required.
- IRS Letter CP01E: If the IRS suspects someone used your SSN for employment purposes, you may receive this Letter CP01E. The letter is notifying you about possible identity theft and it will include steps you might take to protect your accounts, such as bank and other financial accounts.
Always respond promptly to IRS letters so they can resolve tax fraud matters quickly.
3. Report the Identity Theft Immediately
It may be wise to report suspected identity theft to the Federal Trade Commission (FTC) through their online portal. And depending on the circumstances—particularly if you suspect someone is actively using your SSN—you should report the theft to local law enforcement. If you do report the incident to law enforcement, it’s best to have FTC and IRS correspondence on hand to help speed matters along.
4. Seek Legal Advice
It’s imperative that you consider seeking legal advice the moment you suspect identity theft, or that someone’s using your SSN. The Gordon Law attorneys will help you manage this incredibly stressful situation effectively. We’ll assist you in liaising with the IRS, FTC, and local law enforcement, and we can explain what legal remedies you have if there are any tax implications such as tax debt or tax penalties.
How Long Does the IRS Investigation Last?
While the IRS takes identity theft seriously, investigations can take a while to resolve. You can expect investigations to take up to 120 days to resolve, although more complex cases may take longer. The more information you can provide to help the IRS verify your identity, the smoother the process may go. A Gordon Law attorney can assist you in presenting the clearest and strongest case to the IRS to help minimize the risk of delays.
What Else Should I Do if I Suspect Identity Theft?
If someone’s using your SSN, it could be a sign of a wider identity theft problem. So, here are some other safety precautions to take to protect yourself now and in the future.
- Obtain a copy of your credit report. Look for unexpected activity, such as loan applications, credit searches, or lines of credit you don’t recognize.
- Sign up for identity theft protection. An E-verify account can prevent scammers from using your SSN.
- Continue to monitor your accounts. Regularly check your accounts, such as bank accounts, retirement accounts, and your credit report for signs of irregular activity.
- File tax returns early. Although you don’t want to file prematurely, which could mean underestimating your taxes, file as early as you can. That way, scammers won’t have a chance to use your SSN for tax filing.
Worried About Tax Fraud? Contact Gordon Law!
Tax fraud and identity theft can have devastating consequences. Even if someone, somehow, used your SSN accidentally, the damage can be long-lasting. But this is where Gordon Law can help you. Our experienced team will quickly step in to help you navigate this process, from handling IRS negotiations to completing your tax return. Let us support you during any tax investigation and be proactive about preventing tax debt. Call now or contact us online to learn how we can assist.
