Someone Used My Child’s Social Security Number for Taxes. What Can I Do?
Learn how to address and prevent unauthorized use of your child's SSN on taxes, ensuring their identity remains secure and protected.
Discovering that your child’s Social Security Number (SSN) has been used fraudulently on tax returns is alarming and poses long-term financial risks, potentially harming their credit history before they have a chance to establish one. Addressing this issue promptly is essential to mitigate consequences and protect your child’s identity. Understanding the necessary steps to resolve unauthorized use and prevent future occurrences is crucial for parents in this situation.
Identifying Unauthorized Use
Detecting misuse of your child’s SSN requires vigilance. A common indicator is an IRS notice stating that your child’s SSN has been used on another tax return. This often occurs when your tax return is rejected due to a duplicate SSN entry, requiring immediate attention.
The IRS’s Identity Protection PIN (IP PIN) program can help prevent further misuse. This six-digit number, required when filing tax returns, adds an extra layer of security. Additionally, reviewing your child’s credit report—even if they don’t have an established credit history—can reveal unexpected activity or accounts opened in their name.
Discrepancies in tax benefits, such as denied or adjusted Child Tax Credit or Earned Income Tax Credit claims, may also indicate fraudulent use of your child’s SSN. Familiarity with the IRS’s eligibility criteria for these credits can help you spot inconsistencies.
Steps to Take if SSN is Misused
If you discover your child’s SSN has been misused, act swiftly. Start by reporting the identity theft to the Federal Trade Commission (FTC), which provides a recovery plan and an identity theft report to guide the process. File a police report with your local law enforcement agency to document the fraudulent activity.
Contact one of the three major credit bureaus—Equifax, Experian, or TransUnion—to place a fraud alert on your child’s credit report. This alert warns creditors to verify identity before opening new accounts. You may also freeze your child’s credit, restricting access to their credit report unless lifted with a PIN or password.
Notify the IRS by submitting Form 14039, Identity Theft Affidavit, to formally report the misuse and initiate an investigation. Maintain detailed records of all communications with the IRS and other involved entities.
Reporting to the IRS
Reporting SSN misuse to the IRS requires adherence to its protocols. The IRS’s Taxpayer Protection Program provides resources and guidance for victims of tax-related identity theft. Submitting Form 14039 alerts the IRS to the issue and begins their investigation.
If SSN misuse delays your tax filing, penalties may apply. You can request penalty relief by demonstrating reasonable cause, such as identity theft. Requesting a transcript of your tax account can help identify discrepancies or unauthorized filings. The IRS’s Identity Theft Victim Assistance (IDTVA) service can also expedite resolution.
Protecting Your Child’s Identity
Safeguarding your child’s identity starts with securing personal information. Store sensitive documents like birth certificates and Social Security cards in a secure location, accessible only when necessary. When sharing your child’s information for legitimate purposes, such as school enrollment, inquire about the organization’s data protection policies.
Teach your child about privacy and the importance of safeguarding personal information, both online and offline. Help them understand the risks of sharing details like their name, address, or other identifying information on social media or through unsecured channels.
Monitoring for Future Fraud
After addressing the misuse of your child’s SSN, ongoing vigilance is crucial. Identity theft can have lingering effects, and monitoring ensures any new issues are caught early. Periodically check your child’s credit report for unauthorized activity. Federal law allows you to request one free credit report annually from each of the three major credit bureaus.
Enroll in the IRS’s Identity Protection PIN (IP PIN) program to add an additional layer of security for tax filings. The IP PIN changes annually, making it more difficult for identity thieves to file fraudulent returns. Beyond tax-related protections, consider freezing your child’s credit with all three credit bureaus to block unauthorized activity. While this step requires effort, it is an effective way to safeguard your child’s financial future.