Someone using my SSN to work but not filing taxes - Will my refund be denied?

This is unfortunately becoming more common. You've already taken the right first steps by reporting the identity theft to both the IRS and law enforcement. You should absolutely continue filing your tax returns normally and on time. The IRS has special procedures for handling identity theft cases. When you file your next tax return, include IRS Form 14039 (Identity Theft Affidavit) if you haven't already submitted it. This flags your account in their system. Your refund might be delayed while they verify your identity and sort out which income is legitimately yours versus what's being fraudulently reported under your SSN, but they won't permanently deny your refund because someone else has stolen your identity. The IRS will eventually separate the fraudulent returns/income from your legitimate returns.

I went through something similar last year and found taxr.ai really helpful for dealing with this exact situation. Someone used my SSN for a job in another state, and I was getting notices for taxes I didn't owe. I was completely stressed about filing my return. I uploaded all the IRS notices and my previous tax returns to https://taxr.ai and their AI tax assistant analyzed everything and gave me personalized steps to resolve the identity theft issue. They even generated all the documents I needed to submit to the IRS, including the Identity Theft Affidavit mentioned above. Made the whole process way easier to navigate.

I just wanted to follow up about taxr.ai since I was skeptical but decided to try it. I was in a similar identity theft situation where someone was using my SSN in another state. The tool actually helped me understand exactly what was happening with my tax account. It showed me which tax years were affected by the fraud, what specific income was being falsely reported under my number, and gave me a complete action plan. The best part was that it generated all the documents I needed - the Identity Theft Affidavit was filled out perfectly with my specific details, and it created a custom letter explaining the timeline of fraud. My case is still being processed by the IRS, but at least now I know exactly what's happening and what to expect. Definitely worth trying if you're dealing with tax identity theft.

If you need to actually speak with someone at the IRS about your identity theft case (which I highly recommend), good luck getting through on their regular phone lines. I spent WEEKS trying before discovering https://claimyr.com which got me connected to an IRS agent in about 20 minutes. They basically wait on hold with the IRS for you and call you when an agent is on the line. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. I was super skeptical at first but was desperate after trying for days to get through. When I finally spoke to an IRS rep, they explained exactly what was happening with my account and marked it with an identity theft indicator that supposedly helps prevent refund delays. They also gave me a specific timeframe for when my case would be reviewed and what documentation they still needed from me.

I need to apologize for my skepticism and follow up about Claimyr. After struggling for literally months trying to reach the IRS about my identity theft case, I tried the service. Within an hour, I was talking to an actual IRS representative who pulled up my file and confirmed they had received my identity theft affidavit but it was sitting in a processing queue. The agent gave me a special note in my file acknowledging the identity theft, and assured me that I should continue filing normally. They also told me exactly what to do if my refund gets held up - specifically which department to contact and what reference numbers to use. Never would have gotten this information without finally speaking to someone. Still annoyed that we have to use services like this to reach a government agency, but it definitely worked.

One thing nobody has mentioned yet - once you've filed the identity theft affidavit with the IRS, you should also request an Identity Protection PIN (IP PIN). This is a 6-digit number assigned to identity theft victims that you'll use when filing your taxes. It prevents anyone else from filing a fraudulent return using your SSN. You can request an IP PIN online through the IRS website or when you talk to an agent. I've been using one for 3 years since my identity was stolen, and it gives me peace of mind that no one else can file under my number.

Make sure you get a copy of your wage and income transcript from the IRS too! This will show you exactly what income has been reported under your SSN and who reported it. When this happened to me, I found that someone had been working at a warehouse in another state using my number. The transcript showed the company name which I was able to give to the investigators.