Tax Season Blog Series – Taxpayer’s Guide to Identity Protection [1/10]

Tax season brings more than deadlines and paperwork for accounting firms. However, it also increases the risk of identity theft for taxpayers. Scammers are actively targeting personal and tax-related information, making vigilance more important than ever. 

The IRS had already identified over 12,600 fraudulent tax returns and successfully prevented more than $105 million in illegitimate refunds from being issued. 

In the last post of our Tax Season 2026 blog series, we discussed how you can better manage your time and boost your productivity during tax season. 

Continuing the series, this post will explore why identity theft is a key challenge for taxpayers, how to prevent it, and what steps to take if your identity is compromised. 

This guide provides practical strategies and actionable tips to help you safeguard your identity throughout the tax season and beyond. 

Common Types of Identity Theft  

Employment-Related Identity Theft 

Cyber criminals can use your Social Security number to secure employment. Employers then report wages under your name, which can lead to incorrect income records and unexpected tax problems. 

Dependent Identity Theft 

Fraudsters steal a child’s Social Security number to file false tax returns or open financial accounts. Because children do not monitor credit activity, this type of fraud can go undetected for years. 

Deceased Identity Theft  

Scammers exploit the personal information of deceased individuals, such as Social Security numbers and dates of birth, to open accounts or submit fraudulent tax filings. They often obtain this data from public records and obituaries, frequently targeting older adults and their families. 

How to know if your tax account is affected? 

You should be alert if you receive a message from the IRS or hear from your tax professional that:  

1. A duplicate return has been filed in our name. 
2. Your account is showing a due balance or refund offset for the year in which you were not supposed to file the return. 
3. Your federal or state benefits are reduced or canceled because of an income change report that you didn’t make. 
4. Information filed shows income more than actually earned. 
5. There are records of wages or income from an employer where you have never worked. 
6. You receive Form 1099-G showing unemployment benefits you never applied for or received. 
7. An Employer Identification Number (EIN) is issued in your name without your request. 
8. The IRS sends an unreported income notice, such as a CP2000 series letter. 
9. Someone contacts you offering unsolicited help to access or manage your IRS Online Account. 
10. Online tax or IRS accounts are created or accessed without your knowledge. 
11. You receive alerts for password resets or login verification attempts you did not initiate. \
12. A confirmed data breach exposes your personal or tax-related information. In such cases, consider filing IRS Form 14039 (Identity Theft Affidavit). 

Steps to Take After Identity Theft 

If you believe your identity has been compromised, take the following actions immediately: 

1. Cut Off Contact with the Scammer: Stop all communication immediately. Do not share personal, financial, or tax information, and avoid clicking suspicious links or opening unknown attachments. Run antivirus software if you have already interacted. 
2. Follow IRS Guidance: Carefully review and follow the instructions provided in any IRS letter, notice, or official communication. 
3. Report the Identity Theft: Notify the appropriate authorities as soon as possible to reduce further risk and document the incident. 
4. Begin Recovery at IdentityTheft.gov: Use IdentityTheft.gov to complete the recommended recovery steps and create a personal recovery plan. 
5. Keep Detailed Records: Save copies of all letters, emails, and notes from phone calls related to the identity theft. 
6. Continue Normal Tax Filing: File your tax returns and pay any taxes owed as you normally would, even while resolving identity theft issues. 
7. Contact Your State Tax Agency: Check with your state tax authority for additional steps or reporting requirements that may apply. 

How to prevent identity theft?

The IRS is taking all the steps to prevent identity theft, but it’s not easy to catch such fraud on the spot. As you cannot always count on the organization to protect you, you will have to take precautions yourself. 

1. Leave your Social Security Card at home 

Identity theft mostly involves the SSN as it is used by the IRS and state tax authorities to identify taxpayers. The thief uses the SSN to file a fraudulent return before you file it and then grabs the refund. To prevent this from happening, leave your SSN card at home, especially during tax season. 

2. File early 

Identity thieves usually strike early when the season begins. Once they have access to your SSN, they can easily file the tax return in your name. The purpose, obviously, is to take your refund. Try to file as soon as possible. The IRS will reject any duplicate filings once it receives a return with your SSN. 

3. Secure your network 

Do not use public wi-fi or any network that is not password-protected to file your tax return. Most of these networks lack security protections, which makes it easier for identity thieves to get access to your personal information. Always use a firewall and update your anti-virus software. 

4. Get an Identity Protection PIN (IP PIN) 

An IP PIN is a six-digit number issued by the IRS to protect your tax identity. It prevents anyone else from filing a tax return using your taxpayer identification number. Even if someone has your SSN, the return will not be accepted without the IP PIN. 

5. Secure Your IRS Online Account 

Your IRS Online Account contains sensitive personal and tax information. Protect it by using a strong, unique password that you do not use elsewhere. This reduces the risk of unauthorized access and account misuse. 

What to do if you are a victim of tax fraud?  

If you receive notice from the IRS and are suspicious of identity theft, respond immediately by calling them. If you didn’t receive any notice but think that you have been a victim, contact the IRS Identity Protection Specialized Unit at 800-908-4490 immediately.  

Also, fill out Form 14039 and follow the instructions related to the particular circumstance. The form is used in instances where an event may make you vulnerable to identity theft, including misuse of personal information or stolen documents.  

Here are some recommendations from the Federal Trade Commission for ID theft victims: 

1. File a complaint at identitytheft.gov website. 
2. Place an alert on your credit records by contacting major credit bureaus such as Equifax, Experian, and TransUnion. 
3. Call your financial companies and close any accounts existing without your approval. 

How long will identity theft delay the refund process?

According to the IRS, the time taken to resolve such cases depends on the volume and complexity of the situation. One of the victims said that it would take about six months to receive the refund. 

According to the IRS website, most cases are resolved within 120 days, but may take longer for complex cases. It also depends on whether you tell the IRS that you are a victim of identity theft or the IRS notifies you about a suspicious tax return with your personal information. 

Are You Doing Enough to Safeguard Your Tax Identity? 

Protecting your tax identity requires consistent and proactive effort. Filing your tax return early and securing your Social Security number can reduce the risk of identity theft.

Use updated software, reliable antivirus and anti-malware tools, and strong, unique passwords to protect sensitive data. Taking these simple but essential steps puts you in a stronger position to defend your tax identity year after year. 

In the next post of this blog series, we’ll share some tips on how you can have fun at work to reduce stress and improve productivity.