What To Do If A False Tax Return is Filed in Your Name

By Nat Sillin

Few things are scarier than receiving an unexpected letter from the Internal Revenue Service (IRS). The IRS sends out letters and notices for many reasons, but tax identity theft has become one of the leading causes.

What is tax identity theft? In short, it involves an identity thief using your personal information to either file a fraudulent tax return and steal your refund, or to obtain a job and avoid paying the income taxes.

In recent years, this crime has been on the rise. Between 2024 and 2025, the FBI’s Internet Crime Complaint Center (IC3) saw a 26% increase in complaints for tax-related identity theft. Sadly, it now takes the IRS an average of 506 days to resolve victims’ claims. If you’ve been impacted, here’s what you need to know.

How do tax identity thieves steal your information? 

Tax identity thieves have a few common methods for stealing information. They often do it by hacking websites or tricking victims into revealing sensitive data. Here are some events that can lead to tax-related identity theft:

• Data breaches
• Lost or stolen wallets
• Phishing emails or texts that appear to be from the IRS
• Phone scams where criminals impersonate IRS agents
• Someone makes unauthorized changes your IRS Online Account

In some cases, the criminal may also be a relative or someone you know. For example, family tax fraud can happen if a disgruntled former spouse has your Social Security number (SSN) and other sensitive information, they can potentially file a tax return in your name. 

How to know if someone filed a tax return in your name

Many taxpayers don’t realize they’ve been targeted until months after the fact. That’s because tax identity thieves race to submit tax returns early in the filing season, before you get a chance to do so yourself.

Here’s how you typically find out if someone filed a tax return in your name:

• Rejected returns: When you attempt to file, the IRS rejects your tax return because they say you’ve already filed. They may also tell you about information on your returns that’s not familiar to you, like an employer you don’t work for.
• IRS notification: If the IRS detects a suspicious tax return, their Taxpayer Protection Program will send you a letter asking you to verify your identity and tax information. Alternatively, you might receive a notice stating that someone created an IRS Online Account in your name.

Five immediate steps to take if you’re a victim of tax identity theft

If you believe someone filed a false tax return in your name, it’s crucial to respond immediately. Considering how severe the damage can be, and how long it takes the IRS to resolve these issues, you could have a long road ahead of you.

Here’s how to report tax fraud and protect yourself from further damage:

1. If you received an IRS notice saying that someone already used your SSN or ITIN to file, immediately call the number on the notice. You may need to have your prior year’s tax return on hand to help verify your identity.
2. Go to IdentityTheft.gov to report the fraud and get a personalized recovery plan. This may include information on how to report the incident to the police or your bank.
3. Complete the IRS Identity Theft Affidavit (Form 14039) and submit it online or by mail. For assistance, call 800-908-4490.
4. Avoid further fallout by protecting your credit. Pull your three credit reports from AnnualCreditReport.com to check for suspicious activity. If you find anything that doesn’t belong, contact the corresponding credit bureau(s) to file a dispute.
5. Contact all three credit bureaus (Experian, Equifax and TransUnion) to place credit freezes on your files and prevent fraudsters from opening new accounts in your name.

How to Protect Yourself from Future Tax Fraud

If you’ve never experienced this type of identity theft, don’t take your luck for granted. Follow these steps to stay safe in the coming tax seasons:

• File early: Filing your taxes early in the season reduces the chance that someone will beat you to it with a fraudulent return.
• Use online security measures: Set up strong passwords and two-factor authentication for your online accounts, including your IRS Online Account, online banking and tax-filing software.
• Beware of incoming communication: The IRS will never email, text, or call you to ask for your personal information. If you get an incoming message that’s supposedly from the IRS, don’t respond.
• Use an IP PIN: An IRS identity protection PIN (IP PIN) is a unique code assigned to you that prevents anyone from filing a tax return with your SSN. You can sign up for the IRS IP PIN program at IRS.gov.

For even more help recovering from identity theft and safeguarding your credit, talk to an NFCC-certified credit counselor. These counselors can review your credit reports with you and offer personalized advice on how to protect your finances.

Nathaniel Sillin is the Head of Global Financial Literacy at Visa Inc. and runs the company’s financial literacy program in the United States, which includes the award-winning Practical Money Skills for Life and What’s My Score programs. As part of his work at Visa, Sillin is a frequent public speaker and an active voice in the financial literacy community.
Views expressed are the personal views of the author, and do not represent the views of the National Foundation for Credit Counseling, its employees, its members, or its clients.