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Tax Identity Theft Red Flags: How to Know If Someone Filed in Your Name Protecting What’s Yours During Tax Season |
You sit down to file your taxes. You’ve got your W-2s organized, your receipts in a folder, and you’re ready to knock this out. You enter your Social Security number, click submit — and the return gets rejected.
“A return has already been filed using this Social Security number.” |
Your stomach drops. You haven’t filed yet. Which means someone else did.
This is tax identity theft, and it’s more common than most people realize. The IRS flagged over 1.1 million returns for potential identity theft in 2023 alone. And during tax season — roughly January through April — the attempts spike. Criminals know people are expecting refunds, checking for IRS notices, and generally paying more attention to tax-related communications.
There are warning signs, though. Catch them early and you can sometimes stop the damage before it starts.
🚨 01 — Your Return Gets Rejected
This is the most obvious sign. If you file electronically and receive a rejection notice saying a return with your Social Security number has already been submitted, someone else beat you to it.
What to do: File a paper return instead, and include IRS Form 14039, the Identity Theft Affidavit. The IRS will investigate and work with you to resolve it — but expect delays. Processing a paper return with an identity theft flag can take several months. |
🚨 02 — You Receive an IRS Notice About Income You Didn’t Earn
The IRS might send a letter saying you owe additional taxes based on income from an employer you’ve never worked for. This often means someone used your Social Security number to get a job and that employer reported wages to the IRS under your name.
This isn’t just a tax problem — it’s a sign your information is being actively used. You’ll need to respond to the IRS notice and may need to contact the Social Security Administration as well. |
🚨 03 — An IRS Letter References a Return You Didn’t File
If you receive a notice about a tax return you never submitted — acknowledging receipt, asking for additional information, or confirming a refund — don’t brush it off. Scammers sometimes file fraudulent returns to claim refunds in your name, often directing the money to prepaid debit cards or accounts they control.
Don’t ignore these letters. Even if you assume it’s a mistake, contact the IRS directly using the phone number on their official website (irs.gov), not the number on the letter. |
🚨 04 — Your IRS Online Account Shows Unfamiliar Activity
The IRS allows taxpayers to create an online account at irs.gov. From there, you can view your tax records, payment history, and transcripts. If you see a return filed that you didn’t submit, or a refund issued that you never received, that’s a serious warning sign.
If you haven’t created an IRS account yet, consider doing so. It’s one more way to monitor what’s happening under your Social Security number — and if you don’t create one, a criminal might do it for you. |
🚨 05 — Quieter Warning Signs
Not every red flag announces itself with a rejected return or an IRS letter. Some are easier to miss.
If your W-2 or 1099 doesn’t arrive when expected, follow up with your employer. It might be a simple mail delay — or it might mean someone changed the address on file to intercept your documents. The same applies if you receive a tax transcript you never requested. The IRS allows taxpayers to request transcripts of past returns, and if one shows up unsolicited — especially right before tax season — someone may be gathering information to file in your name.
These quieter signs are worth paying attention to precisely because they’re easy to dismiss. |
What Makes Tax Season Different
Criminals don’t need much to file a fraudulent return — just your name, Social Security number, and date of birth. With that, they can fabricate income, claim fake deductions, and request a refund. The IRS often issues refunds before it has time to fully verify every return, which is exactly what scammers count on.
The part that frustrates people is that you did nothing wrong, but you’re the one stuck dealing with the fallout. The burden of proof often falls on the victim, and the resolution timeline can stretch into months. |
🛡️ Steps to Protect Yourself
File early. The sooner you file, the less time a criminal has to file first. If your return is already on record, a fraudulent one will get rejected instead of yours. |
Use an Identity Protection PIN. The IRS offers a six-digit IP PIN that adds a layer of security. Once you have one, no one can file a return using your Social Security number without it. You can request one through your IRS online account. |
Monitor your IRS account. Log in periodically to check for unfamiliar activity. You don’t need to obsess over it — just a quick check during tax season. |
Secure your Social Security number. Don’t carry your card in your wallet. Be cautious about who you share your number with. If a company asks for it, ask why they need it and how they’ll protect it. |
Watch for phishing attempts. During tax season, scammers send emails and texts pretending to be the IRS. The IRS does not initiate contact by email, text, or social media. If you receive a message claiming to be from the IRS and asking you to click a link or provide information, it’s a scam. |
If It Happens to You
Tax identity theft is frustrating, but it’s manageable. The IRS has an entire department dedicated to resolving these cases.
Start by filing Form 14039 and responding to any IRS notices you’ve received. Keep copies of everything. Consider placing a fraud alert or credit freeze with the three major credit bureaus — Equifax, Experian, and TransUnion — since tax identity theft often goes hand-in-hand with broader identity theft. You can also report the theft to the Federal Trade Commission at IdentityTheft.gov, which will guide you through a personalized recovery plan. |
📅 One Thing to Do This Week
If you haven’t already, create an IRS online account at irs.gov. It takes about fifteen minutes, requires identity verification, and gives you direct visibility into your tax records. That visibility is worth more than most people think. |
You don’t have to become paranoid about tax fraud. But a few simple steps — filing early, using an IP PIN, and monitoring your IRS account — can make you a much harder target. And in a season where criminals are looking for easy marks, that matters.
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Written and shared by Anthony S. Owens, on behalf of the team at McKee Financial Resources, Wealth Management Services.
Disclaimer: This article is for educational purposes only and should not be considered financial, legal, or tax advice. Tax laws are subject to change, and individual circumstances vary. The strategies mentioned may not be suitable for every situation. Please consult a qualified financial professional for guidance tailored to your individual situation. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. |