Someone Else Filed My Taxes Without My Permission. What Can I Do?

Discovering that someone has filed your taxes without permission can be alarming and confusing. This unauthorized action jeopardizes your financial security and poses legal implications. Addressing this issue promptly is essential to protect your personal information and comply with tax regulations.

Identifying Unauthorized Tax Filing

Recognizing unauthorized tax filing is crucial. A clear sign is receiving an IRS notice, such as a CP01E, indicating a tax return has already been filed using your Social Security number. This is especially concerning if you have not yet submitted your own return. Similarly, attempting to e-file and receiving a rejection notice due to a duplicate filing indicates someone else has used your credentials.

Unexpected tax documents, like a Form 1099-G for unemployment benefits you did not claim, may suggest fraudulent use of your information. Discrepancies in your IRS account transcript, such as unrecognized income or deductions, also warrant attention. Regularly reviewing your IRS account can help catch these issues early.

In some cases, receiving an unexpected refund check or direct deposit could indicate a fraudulent return filed in your name. Verify the legitimacy of any unexpected refunds with the IRS to avoid complications.

Steps to Take if Someone Filed Your Taxes

If you discover someone has filed your taxes without permission, act quickly to address the situation. Contact the IRS Identity Protection Specialized Unit at 1-800-908-4490. They can help secure your account and issue an Identity Protection PIN (IP PIN), a six-digit number that adds an extra layer of security to your tax return.

File IRS Form 14039, the Identity Theft Affidavit, to officially notify the IRS and begin rectifying your tax records. Include supporting documents, such as a copy of your Social Security card or government-issued ID, and send the form to the address specified in the instructions for a faster response.

Additionally, report the identity theft to the Federal Trade Commission (FTC) at IdentityTheft.gov to create an official record and receive a tailored recovery plan. Contact one of the major credit bureaus—Equifax, Experian, or TransUnion—to place a fraud alert on your credit report and mitigate any impact on your credit score.

Reporting Tax Fraud to the IRS

Engaging with the IRS is essential when you suspect tax fraud. Complete IRS Form 3949-A, the Information Referral form, to detail the fraudulent activity, including the type of violation and any known details about the perpetrator. Providing comprehensive information can aid the IRS investigation.

If a business or tax preparer is involved in fraudulent activity, consider reporting through the Whistleblower Office. This program incentivizes individuals to report significant tax fraud by offering financial rewards based on the amount recovered. Whistleblower submissions require detailed documentation and can take time to process, but they play an important role in promoting tax compliance.

Protecting Your Personal Information

Safeguarding your personal information is vital in an era of frequent data breaches and identity theft. Regularly update passwords across financial accounts, using complex combinations of letters, numbers, and symbols. A password manager can help maintain secure credentials.

Enable two-factor authentication (2FA) whenever possible. This adds an additional layer of security by requiring a second verification step, such as a code sent to your mobile device. Many financial institutions and online services offer this feature.

Monitor your credit report by reviewing it annually through AnnualCreditReport.com. The Fair Credit Reporting Act allows you to obtain a free credit report from each of the major bureaus—Equifax, Experian, and TransUnion—once every 12 months.

Legal Actions and Resources Available

Legal recourse and available resources can help you resolve tax-related identity theft and prevent further misuse of your information.

Pursuing Legal Actions

If your identity has been used to file taxes fraudulently, consider consulting an attorney specializing in tax law or identity theft. Legal counsel can help navigate disputes over liability for fraudulent refunds or penalties. Under Internal Revenue Code Section 6664(c), taxpayers may be relieved of penalties if they demonstrate reasonable cause and good faith in addressing the fraud. If the perpetrator is identified, you may have grounds for a civil lawsuit under identity theft laws, which vary by state but often allow victims to recover damages for financial losses and emotional distress. While the IRS does not pursue criminal charges against victims, they may prosecute the perpetrator for filing false returns.

Accessing Resources

Numerous resources are available to victims of tax-related identity theft. The IRS Taxpayer Advocate Service (TAS) provides free assistance for taxpayers facing financial hardship or unresolved tax issues. TAS can help expedite the resolution of identity theft cases and ensure your tax account is corrected.

Nonprofit organizations like the Identity Theft Resource Center offer guidance on recovering from identity theft, including steps to secure your financial accounts. If your Social Security number has been compromised, the Social Security Administration (SSA) can issue a replacement card or provide additional monitoring services. Leveraging these resources, along with legal support, can help you regain control and safeguard your financial future.