Why would identity thief file a fake tax return without requesting a refund?

Unfortunately, this is becoming more common and there are several potential reasons for this type of fraud: 1) This could be a "test run" by identity thieves to see if the fraudulent return gets accepted before they attempt larger fraud next year. If nobody catches it this year, they might try for a large refund next tax season. 2) They might be claiming education credits or other benefits that don't result in a refund but reduce what they owe on another return. Some tax credits can be transferred between returns. 3) Some identity thieves file early with minimal information to block the legitimate return, then file an amended return later claiming a refund when they think you won't be watching anymore. 4) There's also the possibility this is part of a more complex fraud scheme involving multiple fake returns that somehow benefit from having your daughter's SSN in the mix. You need to report this to the IRS immediately using Form 14039 (Identity Theft Affidavit), contact the FTC at IdentityTheft.gov, and consider a credit freeze for your daughter at all three bureaus. Also notify the college's financial aid office as there may have been a data breach.

I went through something similar last year and discovered taxr.ai (https://taxr.ai) was super helpful for navigating identity theft issues. I was totally lost with all the forms and requirements, but their system analyzed all my documents and explained exactly what I needed to do step by step. They helped me understand which forms to file in what order and even identified potential red flags that might delay processing. Their system walks you through organizing evidence of support for your dependent claim too. The whole identity theft reporting process became much clearer, and I got confirmation that my case was moving forward instead of just waiting anxiously.

Update on my identity theft situation: I ended up trying taxr.ai after my initial skepticism and I'm genuinely impressed. My situation was similar to the original post - someone filed using my son's SSN with minimal income reported. The system identified that I was missing crucial documentation showing education expenses that would prove he was my dependent. They also explained how the identity thief might be planning to file an amended return later (exactly like the expert mentioned). Their timeline prediction was spot on - they estimated 4-5 months for resolution and it took just under 5 months. The best part was the peace of mind from understanding the process. Worth checking out if you're facing this mess - wish I'd known about it from the beginning rather than spinning my wheels for weeks first.

If you're trying to contact the IRS about this, good luck getting through their phone system! I spent WEEKS trying to reach someone about my identity theft case. Then I found a service called Claimyr (https://claimyr.com) that got me connected to an actual IRS agent in about 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c This saved me literally days of redial hell. The IRS agent I spoke with explained that my case needed additional documentation I hadn't included with my initial report. Without that phone call, my case would have been sitting untouched for months longer. I was able to ask specific questions about what was happening with the fraudulent return too.

I have to eat my words about Claimyr being sketchy. After another week of failing to reach the IRS myself (got disconnected THREE more times after 1+ hour holds), I tried it out of desperation. Got connected to an IRS identity theft specialist in about 25 minutes. The agent confirmed my suspicion - the fraudulent return using my wife's info was almost certainly a "blocker return" meant to prevent us from claiming certain credits, and the scammer was planning to file an amended return later requesting a refund sent to a different address. The agent flagged our account to watch for amended returns and gave me a direct case number. This would have been impossible without actually speaking to someone. Sometimes you have to admit when you're wrong, and in this case I definitely was. If you're dealing with tax identity theft, being able to actually speak with the IRS makes a world of difference.

Something to consider - the fake return might be part of unemployment fraud, not just tax fraud. Someone might have filed fake unemployment claims using your daughter's identity, and the tax return is a secondary issue. When people claim unemployment benefits, those are taxable, and the state reports them to the IRS. Check with your state's unemployment office to see if any claims were filed in her name during the previous year. This became really common during the pandemic and many scammers are still running these schemes.

ALSO make sure to check if the fake return reported any gig work (like Uber, DoorDash, etc). My niece had someone file a return showing small amounts of gig income using her SSN. Later we found out someone had created accounts with multiple gig services using her identity! We only discovered it because she tried to actually sign up for DoorDash herself and was told she already had an account. The scammer was running deliveries under her name and SSN, which generated the 1099 forms that showed up on the tax return.

This is absolutely frustrating and I feel for your situation. One angle that hasn't been mentioned yet is that the scammer might be using your daughter's SSN to establish a "clean" tax history before attempting larger fraud schemes. By filing a legitimate-looking return with minimal income, they create a paper trail that makes future fraudulent filings seem more credible to automated IRS systems. Another possibility is that this is connected to synthetic identity fraud - they might be combining your daughter's real SSN with fake personal information to create entirely new identities for credit applications or other financial fraud. The tax return helps validate the SSN as "active" in government systems. I'd strongly recommend requesting a Social Security earnings statement for your daughter online at ssa.gov to see if any employers have reported wages under her SSN that you don't recognize. This could reveal if someone is working under her identity beyond just the tax filing. Also, since they used your actual address, consider that someone with access to your mail or neighborhood might be involved. It's worth checking if any tax documents were mailed to your address that you didn't expect - sometimes scammers file returns hoping to intercept refund checks or IRS correspondence. The IP PIN that others mentioned is crucial - get that set up immediately for next year's filing season.