What to do if You are a Victim of Tax Fraud

It's happened many times to many people. Their return has been signed and completed as normal and after signing the return, they find out that it has been rejected by the IRS with an error message saying "Your return has been rejected due to a duplicate SSN." The instant feeling of panic and confusion sets in until one overpowers the other.

Though it isn't something you want to deal with, the issue can be resolved. First things first, if it was your SSN that was used on a previously filed return - you'll need to fill out the IRS Form 14039 and mail it with the tax return that was rejected. If it was your dependent's SSN, there are more steps and you'll want to visit the IRS site using this link.

Assuming it is your social that was used, once the IRS receives the Form 14039, they will send you an acknowledgement letter by mail. Upon receipt of the letter, the process time takes anywhere from 120 - 180 days and could be longer depending upon the complexity of the issue. During the process, they will review your files to see if it was multiple years or just the current year. They will access if there are any other victims in addition to you. They will verify that your past SSN and other personal information (such as addresses, names, etc.) match with current records and that there wasn't some small mistake or transposing of numbers. Once they've thoroughly examined the files, they will ensure that your tax record is clean of any other fraudulent activity, release your tax refund (if applicable), and in most cases issue you an Identity Protection ID.

An Identity Protection ID is a 6 digit pin that the IRS issues to verify that you are the taxpayer. The IRS will reissue this pin every year before the next tax season. You will not be able to e-file without using this 6 digit pin number. It has to be the current pin number and if it is not entered on the tax return, the IRS will reject your tax return.

If you believe the return was submitted fraudulently, you could request a copy of the fraudulent return by filling out form 4506-F. Follow the instructions with this link.

If the issue has been unresolved and you have already contacted the IRS with the above steps, you can reach them at the specialized assistance number 1-800-908-4490.

---