Alex Iby, Unsplash@alexiby
fraud in tax returns
Did you get an email from efile.com stating that you filed a tax return electronically, or that the irs accepted or rejected your return, but did not file this return at all? someone has filed a declaration with your data; or the ssn you entered was wrong but it matched your ssn or you may be a victim of identity theft and tax fraud where someone intentionally filed a tax return with your information. or, did the irs send you the 5071c or 5747c letter?
If any of the above happened, it does not mean that we at efile.com committed the fraud. Chances are someone used your tax information, either intentionally or by mistake. We are committed to helping our customers and other taxpayers protect their data and promote awareness of identity theft practices. Check out these steps to take if identity theft has affected you.
- read this identity theft information for taxpayers.
- steps to report identity theft to the irs.
Review the following sections for information on how identity thieves attack people, what you can do to protect yourself from identity theft, and how to report identity theft to the IRS or state tax agencies.
return refused due to duplicate ssn
If your return was rejected on the grounds that your ssn was used on a previously accepted return, first check your records to see if you have already filed. if you filed a complete return or even used the irs free file or non-filers return, this is treated as a tax return for the year and any attempts to e-file will be rejected by the irs, not efile.com.
If you are a confirmed victim of tax-related identity theft due to a previously filed or duplicate tax return with your social security number, complete and file Form 14039 if your electronically filed tax return was rejected due to a duplicate social security number. keep in mind that a return already filed under your ssn may also be the result of an honest mistake by another taxpayer, not necessarily the result of intentional identity theft,
log in to efile.com and under “my account” download the pdf file of your rejected tax return. Print, sign, include your Forms W-2, 1099, etc., and mail your return to the IRS. Complete and print form 14039 and follow the instructions for mailing the form. The IRS will then investigate your case, and once the fraudulent tax return is removed from your IRS account, you will receive an IRS-issued IP-Pin in the mail at the beginning of the next calendar year or tax season.
As a confirmed victim of identity theft, you cannot opt out of the ip-pin program unlike other taxpayers. ip-pins will be mailed annually to confirmed victims and participants registered before 2019.
lost ip-pins can also be recovered through the online account.
register account, get ip-pin
what is identity theft?
Identity theft is the fraudulent use of a person’s private identifying information to commit fraud for profit. Identity thieves look for ways to collect personal information from unsuspecting individuals to commit fraud while victims are unaware of the acts.
- In 2020, the IRS launched an Identity Theft Central that improved online access to identity theft information and data security protection for taxpayers, tax professionals, and businesses.
- In 2020, possibly due to the covid-19 pandemic, identity theft cases increased from 2019, reaching a total number of reported cases of just under 1.4 million. Of these, about 400,000 were government document or benefit fraud, 393,000 were credit fraud, and about 113,500 were employment or tax fraud.
- Between 2015 and 2019, the number of taxpayers who reported to have been an identity theft victims fell by 80%. In 2019, the IRS received 137,000 taxpayer reports compared to 677,000 in 2015. This was the fourth year in a row this number has decreased.
- Between 2015 and 2019, the IRS protected a combined $26 billion in fraudulent refunds by stopping confirmed identity theft returns.
- for 2019, approximately 20% of all identity theft and fraud reports were found to be related to identity theft, which is just over 650,000 cases out of more than 3, 2 million reports.
- Identity theft had seen a 33% increase in recent years, according to figures from the Department of Justice. The good news is that the IRS Criminal Investigation Division has helped convict nearly 2,000 identity thieves. they also have more than 1700 open investigations.
You may be a victim of identity theft if you receive a notice or letter from the IRS stating one or more of the following:
- filed more than one tax return using your social security number,
- owes additional taxes, has a refund offset, or has had collection actions against you during a year in who did not file a tax return,and/or
- irirs records indicate that he/she received wages from an employer for which he/she did not work.
If you are a victim of identity theft and a fraudulent tax return was filed using your or your dependents’ Social Security number, you can request a copy of that fraudulent tax return. You would then receive a masked or redacted tax return transcript of the fraudulent tax return filed with your social security number. complete form 4506-f or the identity theft victim request for a copy of the fraudulent tax return. the mailing address is on the form.
how are identities stolen?
Identity thieves use various methods to maliciously obtain personal information. One of the most common methods used to obtain electronic information is “phishing”. Phishing is a technique used by identity thieves to collect private and personal information by sending false electronic communications from an apparently legitimate source. this may take the form of email communications or phone calls from a financial institution, such as a bank or government agency.
Financial institutions and government agencies generally do not ask you for personal information, such as your social security number or password, in emails and phone calls. For example, if the IRS wants additional information about a tax return you filed, they usually send you a letter in the mail, which includes information on how to contact them if you have questions about the notice.
If a person responds to a phishing email or provides personal information to a caller pretending to be the IRS, it is very possible that they are sending would-be thieves the keys to commit fraud.
Here’s more about phishing and email scams.
protect yourself from identity theft
There are a number of steps people like you can take to prevent your identity from being stolen or used fraudulently. review this document for more details on identity theft.
request an ip-pin or identity protection pin.
online safety
- use security software for your computer or mobile device.
- create strong and unique passwords for your devices and accounts.
- use multi-factor authentication or two-step authentication authentication, verification. when creating an efile.com account, choose to enable this when you log in or sign up later for my account > security center.
- When providing sensitive information, such as paying for an online order, use only secure websites with an “https” in the address bar as well as a lock icon. avoid entering sensitive data while on unsecured public Wi-Fi networks.
phishing prevention
- Watch for emails and/or phone calls asking for your personal information (Note: Initially, the IRS will never email or call you about a tax return; will send a notice by mail first).
- examine the emails to see where they come from. verify the sender as someone you know or a newsletter you’ve subscribed to.
- never provide personal or confidential information to an unverified source. protect your personal data by keeping it in a place where only you will see it.
- contact the financial institution or agency to establish the legitimacy of the email or phone call.
- review statements bank and credit card information for any unusual activity.
- use security software with firewall and antivirus protections. make sure the software is always on and allows automatic updates. Check out these different security features used on efile.com.
- Watch out for fake charities: don’t be pressured to donate; confirm that charity is real; donate by credit card or check (gift card or money transfer donations are often scams). see more about charitable contributions and taxes.
tax fraud prevention
- Follow the steps above to avoid phishing.
- Choose your eFiling or filing partner carefully.
- Audit and examine your own books for irregularities.
- Be aware of irregular practices, such as keeping two books and the use of social security numbers belonging to the decedent.
- Watch any communication you receive from the IRS or tax agencies.
- make sure your tax records are safe. if they are electronic, encrypt them with strong passwords.
report identity theft to the irs
If you think you are a victim of identity theft, follow the steps below to report tax fraud to the IRS:
- Visit the IRS Identity Theft Headquarters.
- Call the IRS Identity Protection Specialized Unit at 1-800-908-4490 > for guidance.
- Complete Form 14039, Identity Theft Affidavit, to prove that you are the true taxpayer (or on behalf of a deceased spouse or relative whose personal information was used to file a fraudulent tax return). this form must be filed and cannot be filed electronically – fileit. If you are a victim of identity theft that is affecting your tax records, check box 1 in section a. however, if your identity was compromised, but not used in a fraudulent tax return, check box 2 in section a (you can also check this box if any personal belongings or social security cards were stolen).
- mail form 14039 to this address: internal revenue service, stop c2003, fresno, ca 93888.
- you may also need to file a police report and complaint with the federal tax commission. trade on their website if you are a victim of tax return fraud.
Important: If you filed your tax return electronically and the IRS rejected it because your social security number was misused, you will need to file your return on paper. Attach form 14039 and other documentation to your paper return and mail it to the IRS address listed in step 3.
report tax fraud to local state agencies
Generally, each state has either a hotline or an address where a person can file a complaint, if not both. To report tax fraud, call a tax hotline or contact the tax department at the address listed. some states require you to fill out a form to mail. Starting in 2021, many states allow you to report tax fraud online.
In the table below, find each state, the contact phone number, the address to submit the form, and whether or not it is required (yes or no).
*this information is being researched and updated
states with online forms: alabama, arizona, colorado, georgia, hawaii, idaho, illinois, iowa, kansas, louisiana, maine, minnesota, mississippi, missouri, new hampshire, new york, Pennsylvania, Utah, Washington, West Virginia, Wyoming. visit the status page for more information.
If you received an email from efile.com about a tax return, but did not file a return on our site, see our guide on how to report an efile.com account compromise.
additional tax fraud & identity theft information
- identity theft post 5027 with more details and resources
- phishing emails, tax scams
- personal information, fraudulently used credit card in efile .com
- efile.com data and privacy information
- additional information about the efile.com user agreement and cookie settings.
turbotax® is a registered trademark of intuit, inc. h&r block® is a registered trademark of hrb innovations, inc.