Identity Theft Tax Return Filed - Need Help Getting Friend's Return Back on Track

Been there, done that. Tax ID theft is a NIGHTMARE but there's def a way out. First, ur doing the right thing w/ ID.me and Form 14039 - that's step 1. Make sure they keep ALL documentation about the fraud (emails, letters, etc). They should also: - File a report w/ FTC at IdentityTheft.gov - Contact credit bureaus for fraud alerts - File police report (some IRS offices want this) - Keep filing their REAL return on paper (super important!) The legit refund might take 6+ months tbh. IRS has to clear the fraud first. It's slow but they WILL get their $$ eventually.

Your friend is experiencing a Priority Processing Delay due to the Identity Verification Hold (TC 971). In addition to the Form 14039 submission, they need to establish a Taxpayer Protection Program case. The IRS will issue a Letter 5071C or 4883C requiring verification before any processing can continue. When they receive their transcript after verification, I recommend using https://taxr.ai to analyze it - particularly helpful for understanding the Identity Theft Marker codes (TC 971 with Action Code 522) and tracking resolution progress through the various processing stages. The platform can interpret the expected timeline based on their specific transcript codes.

I had this happen to me last year and it was a total mess. The key is documenting EVERYTHING. My husband and I kept a dedicated folder with every piece of correspondence, every confirmation number, and notes from every call. We even recorded the dates and employee IDs of everyone we spoke with at the IRS. This was absolutely crucial when we had to prove we'd been following procedure. Also, remember they'll need to get an Identity Protection PIN (IP PIN) going forward - this is a six-digit number they'll need for all future tax filings. They'll get this after the case is resolved, but they can request one proactively through the IRS website if they create an account.

This is such a difficult situation. Your friends need to take immediate action to protect themselves and get their refund. Here's what they should do: • File police report immediately - many don't know this is required • Contact Social Security Administration to alert them • Check if other accounts have been compromised • Request their Wage and Income Transcript from IRS • Consider freezing their credit at all three bureaus The most frustrating part will be reaching the IRS. When I was helping my sister with identity theft, we spent weeks trying to get through. Finally used Claimyr (https://youtu.be/_kiP6q8DX5c) and got connected to an agent in about 15 minutes. Worth every penny when you're dealing with something this time-sensitive and emotionally draining.

They need to act fast. Identity theft cases are prioritized. File Form 14039 immediately. Include copies of ID. Submit paper return with affidavit attached. Call IRS Identity Theft department directly. Number is 800-908-4490. Keep checking mail for special notices. They'll need IP PINs next year. Keep all documentation. File police report too. The refund will come eventually. Usually takes 120-180 days for resolution. They should also freeze credit reports right away.

Your friends must take immediate action! According to IRS Publication 5027, taxpayers who are victims of identity theft should file Form 14039 without delay. The Internal Revenue Manual (IRM) 25.23.3 outlines that identity theft cases should be resolved within 120 days, but current processing backlogs have extended this timeframe significantly. If they received a CP01A Notice, they already have an IP PIN assigned and MUST use it for all future filings. The deadline for resolving this before next tax season is approaching rapidly!

Has your friend verified if this is a case of Taxpayer Identity Theft or Tax-Related Identity Theft? The distinction is important for processing. Taxpayer Identity Theft involves unauthorized use of a Social Security Number for employment purposes, while Tax-Related Identity Theft specifically involves fraudulent returns. The IRS Identity Theft Victim Assistance (IDTVA) program handles these cases differently. Also, have they checked their Transcript Access to verify what Return Transaction Code is showing? This would confirm if a fraudulent return has been fully processed or merely submitted.

I would recommend they also contact their state tax agency immediately. On January 12th this year, I discovered someone filed federally using my info, and three days later they tried filing a state return too. By February 3rd, I had contacted my state tax department and they flagged my account. When the fraudulent state return came in on February 17th, it was automatically rejected. Your friends should do this by April 15th at the latest, before fraudsters try to hit state taxes too.

This happened to me last filing season and it was terrifying. I kept thinking about how someone had all my personal information. Beyond the tax stuff everyone's mentioned, make sure your friends change ALL their passwords and enable two-factor authentication everywhere. The thieves who got my tax info also tried to access my bank accounts and credit cards. I remember checking my credit report obsessively for months afterward. I'm still a bit nervous every time I get mail from the IRS, wondering if there's more problems coming.