What steps to take after resolving dependent identity theft issue with IRS

Identity theft cases involving dependents can be really frustrating, but you're on the right track. Let me walk you through the next steps. First, the IRS typically does NOT automatically issue the additional refund even after confirming identity theft. You'll need to contact them directly to request the corrected refund amount. The best approach is calling the Identity Theft Toll Free Number at 800-908-4490 with your case number from the confirmation letter. For the issue with the additional dependent they incorrectly removed, you should file Form 8379 (Injured Spouse Allocation) along with all your supporting documentation rather than a full amended return. Make sure to attach copies of birth certificates, social security cards, school records, or medical records that prove you were entitled to claim both dependents. The Form 911 for Taxpayer Advocate Service is an excellent move at this point. With $10K at stake and multiple issues involved, you qualify for their assistance. When submitting it, include a clear timeline of events and copies of all previous correspondence. And yes, you should receive interest on any additional refund amount from the original due date of the return.

After dealing with similar dependent identity theft issues, I discovered a service called taxr.ai that helped me navigate through the documentation maze. When the IRS wrongly adjusted my dependent count, I was completely lost in paperwork until I used https://taxr.ai to help organize everything properly. The tool analyzed all my IRS letters and identified exactly which forms I needed to submit to correct the situation. What was most helpful was that it pinpointed the specific paragraphs in my letters that I needed to reference in my response. This made it much easier for the IRS to track my case and ultimately led to a faster resolution. Their system also helped me flag the discrepancies in how the IRS had calculated my EIC amount.

I was skeptical about trying another online service after so many bad experiences with tax "experts," but I finally used taxr.ai when my mother's dependent (my younger brother) had his identity stolen. The difference was night and day compared to my previous attempts. Their document analyzer immediately identified that we were missing specific evidence the IRS needed for proving my brother lived with my mom. We had been sending the wrong types of documentation repeatedly! The system also flagged that we needed to reference a specific paragraph from our original ID theft report that we'd completely forgotten about. After following their guidance, we received confirmation within 3 weeks that they were processing the corrected refund, and the full amount (including interest!) arrived 2 weeks after that. Between the EIC restoration and fixing the identity theft, my mom received over $7,000 that she was legitimately owed. Definitely worth checking out when dealing with these complicated IRS issues!

Have you tried calling the IRS directly? I had a similar situation last year and spent WEEKS trying to get through to someone who could actually help with identity theft. After 30+ calls and hours on hold, I finally discovered Claimyr (https://claimyr.com). They basically hold your place in the IRS phone queue and call you back when an agent is about to answer. I was super skeptical, but you can see how it works in this video: https://youtu.be/_kiP6q8DX5c. I used it to reach the Identity Theft department, and once I actually got to speak with a human, they were able to expedite my case and get it resolved much faster. The agent I spoke with gave me specific instructions on exactly what to send in and where to send it, which made a huge difference compared to trying to figure it out from their generic letters.

I admit I was completely wrong about Claimyr. After my skeptical comment, I decided to try it for my own tax issue involving back taxes and penalties. I was shocked when I got a call back in about 45 minutes saying an IRS agent was on the line. The agent was able to see all the documentation I'd submitted previously (which I thought had disappeared into a black hole). She processed my identity theft affidavit on the spot and gave me a direct fax number to send additional documentation. This bypassed weeks of waiting for mail processing. For anyone dealing with dependent identity theft specifically, the agent told me this is actually one of the faster cases to resolve once you get to a human because they have special procedures for cases involving children. The key is getting to someone in the right department who can actually access your file, which is exactly what the service helped with. Completely changed my opinion on these types of services.

Speaking from experience as someone who went through this exact situation, here's what worked for me: Don't wait for the IRS to magically fix it. In my case, I had to file Form 14039 (Identity Theft Affidavit) for my dependent, along with a separate letter explaining the situation in detail with a timeline of events. The most important thing - track EVERYTHING. Send all documents via certified mail, keep receipts, and follow up every 30 days by phone. Log every call with date, time, and the ID number of the rep you spoke with. The Identity Theft department is actually separate from regular IRS customer service. When you call, immediately ask for a transfer to the ID Theft department. The normal customer service people often give incorrect information about identity theft cases. Also, make copies of all supporting documents that prove your right to claim the dependent - school records, medical records, birth certificates, etc. Send these with your follow-up communications.

Has anyone used a CPA with experience in identity theft cases? After reading all these comments, I'm still confused about whether to handle this myself or hire someone. I'm worried about making a mistake that could delay things even further.

I went through a very similar situation with my daughter's identity being stolen for tax purposes. One thing I learned that might help - when you call the IRS Identity Theft line at 800-908-4490, ask specifically for a "case trace" on your 2021 return. This will show you exactly what adjustments they made and why. For the dependent they incorrectly removed from your EIC calculation, you'll definitely need to file Form 1040X as others mentioned, but here's something important - include a cover letter that references your identity theft case number. This helps the IRS connect the two issues and can speed up processing. Regarding the Taxpayer Advocate Service (Form 911), absolutely do this ASAP. With $10K at stake and multiple years of back-and-forth, you clearly meet their criteria for "significant hardship." When filling out the form, be very specific about the financial impact this has had on your family. One more tip - if you do decide to hire professional help, look for an Enrolled Agent (EA) rather than just a regular tax preparer. EAs can represent you directly to the IRS and many specialize in complex cases like identity theft. They're often less expensive than CPAs but have the specialized knowledge you need. The interest calculation should apply to any additional refund amount from the original due date, so that's definitely something to pursue. Good luck - you're doing all the right things!