IRS Issues Additional Guidance on Reporting Identity Theft

Jeff Storch | 04.19.18

On April 6, 2018, the IRS issued a release regarding when to file Form 14039 to report tax-related identity theft and when to take other actions. The IRS indicated that in the vast majority of tax-related identity theft cases, there is no need to file the Form 14039. The Form generally only should be filed:

• if the taxpayer attempts to file an electronic tax return and the IRS rejects it because a return bearing the taxpayer’s Social Security number already has been filed; or
• The IRS instructs the taxpayer to file it.

The IRS continued that in most cases of tax-related identity theft, the IRS first identifies a suspicious tax return, pulls it for review, sends a letter to the taxpayer (generally Letter 5071C, Letter 4883C, or Letter 5747C), and will not process the tax return until hearing back from the taxpayer.

Fact Sheet FS-2018 – 6 [link: https://​www​.irs​.gov/​n​e​w​s​r​o​o​m​/​w​h​e​n​-​t​o​-​f​i​l​e​-​a​-​f​o​r​m​-​1​4​0​3​9​-​i​d​e​n​t​i​t​y​-​t​h​e​f​t​-​a​f​f​i​davit ] provides additional information on how taxpayers may protect against identity theft and what steps to take if they think they may be victims of identity theft. 

• Taxation