Form 14039-B Business Identity Theft Affidavit: A Complete Guide (2021)
What Form 14039-B Is For
Form 14039-B is the IRS's official Business Identity Theft Affidavit designed specifically for businesses, trusts, estates, and tax-exempt organizations that have become victims of identity theft. Unlike Form 14039 (which is for individuals), this specialized form allows business entities to report when someone has fraudulently used their Employer Identification Number (EIN) or business name to file fake tax returns, submit fraudulent Forms W-2, or conduct other tax-related fraud.
The form serves two primary purposes. First, it helps businesses that have experienced actual identity theft—where someone has misused their EIN to file fraudulent returns or W-2s. Second, it assists individuals who have never owned a business but are receiving IRS notices about an unknown business operating under an EIN assigned to their name. By filing this affidavit, you're alerting the IRS to investigate the fraudulent activity, remove incorrect tax information from your account, and place protective markers on your records to prevent future misuse.
The May 2021 revision of Form 14039-B streamlined the reporting process and clarified documentation requirements, making it easier for business owners and authorized representatives to report identity theft incidents promptly.
When You’d Use Form 14039-B (Late/Amended Considerations)
You should file Form 14039-B immediately upon discovering any of these red flags: you receive an IRS rejection notice stating that a tax return has already been filed for your business when you haven't filed yet; you get a notice about a tax return your business never filed; you receive notification about Forms W-2 filed with the Social Security Administration that your business didn't submit; you're billed for a balance due that your business doesn't owe; or you've never applied for an EIN but are receiving IRS notices about a business in your name.
Timing matters significantly. File as soon as you suspect identity theft—don't wait until tax filing deadlines. There's no such thing as filing this form "late" since it's not tied to regular tax filing schedules. However, delayed reporting can complicate resolution because fraudulent activity may continue unchecked. If you've already filed a Form 14039-B for the same incident, do not submit duplicates, as this actually delays processing rather than expediting it.
Importantly, you should NOT file Form 14039-B if your business experienced a data breach with no tax-related consequences, or if you've already resolved the issue directly with the IRS through other correspondence. The form is specifically for tax-related identity theft that has resulted in fraudulent filings or notices from the IRS.
Key Rules or Details for 2021
The 2021 version of Form 14039-B (revised May 2021) established several important requirements. First, the person filing must have legal authority to represent the entity and receive return information under Internal Revenue Code Section 6103. This means you must be a sole proprietor, officer, director, partner, managing member, executor, trustee, or another authorized representative.
Documentation requirements are strict and vary by entity type. Sole proprietors must submit two documents: a government-issued photo ID with signature (passport or driver's license) and proof of business operation (utility bill, invoice, or mortgage/rent receipt). Corporations, partnerships, LLCs, exempt organizations, estates, and trusts must provide one or more of the following: articles of incorporation, articles of organization, trust or estate documents, or a statement on corporate letterhead signed by a different officer confirming the filer's authority.
The form must be completed under penalty of perjury, making accuracy critical. You'll need to provide specific information including the affected EIN, tax forms impacted, tax years or quarters affected, whether the EIN is currently active, and a detailed explanation of the identity theft incident with relevant dates. Failure to provide complete information and legible photocopies will delay processing significantly.
Step-by-Step Filing Process (High Level)
Section A — Select the Appropriate Box
Begin by determining which box to check in Section A. Select box 1 if you're not a business owner and never applied for an EIN but are receiving notices about an unknown business. Choose box 2 if you're reporting that your actual business entity, estate, trust, or exempt organization is a victim of identity theft.
Section B — Provide Business Information
Complete the applicable sections based on your selection. Section B requires your business information including legal name, EIN, business address, affected tax forms and years, and whether the EIN is currently active.
Section C — Identify the Submitter
Section C gathers information about you—the person submitting the form—including your position with the entity, your Social Security Number or Individual Taxpayer Identification Number, contact information, and best times to call.
Section D — Explain the Identity Theft Incident
Section D is critical: provide a detailed explanation of why you're filing, including relevant dates and circumstances surrounding the identity theft. Attach additional pages if necessary to tell the complete story.
Section E — Attach Required Documentation
Section E requires supporting documentation—check the appropriate boxes for the documents you're including and provide any information you have about the alleged perpetrator (names, addresses, police reports).
Section F — Sign and Submit
Sign and date Section F under penalty of perjury. Then submit the form by mail (attached to any IRS notice you received, or to Internal Revenue Service, Ogden, UT 84201), by fax (to the number on your IRS notice or toll-free at 855-807-5720), or in person at an IRS Taxpayer Assistance Center (appointment required by calling 844-545-5640).
Common Mistakes and How to Avoid Them
The most frequent error is submitting duplicate forms. Filing multiple Forms 14039-B for the same incident significantly delays resolution rather than speeding it up. Submit once and wait for IRS acknowledgment before taking further action.
Incomplete documentation is another major pitfall. Many filers forget to include the required identity verification documents or submit illegible photocopies. Before mailing, double-check that you've included clear copies of all required documents for your entity type. Missing or poor-quality documentation results in processing delays of weeks or months.
Failing to provide detailed explanations in Section D causes problems. Generic statements like "identity theft occurred" aren't helpful. Instead, specify exactly what happened: "On March 15, 2021, we received IRS Notice CP01 indicating a return was filed for tax year 2020, but our business did not file until April 10, 2021."
Another mistake is having the wrong person sign the form. The signer must have legal authority to represent the entity under IRC Section 6103. If you're an employee without officer or director status, you cannot sign—an authorized representative must complete the form.
Finally, don't file Form 14039-B prematurely. If your business had a data breach but there's no evidence of fraudulent tax filings or IRS notices, filing this form is inappropriate and wastes IRS resources.
What Happens After You File
Within 30 days of the IRS receiving your Form 14039-B, you should receive an acknowledgment letter confirming receipt of your affidavit. This doesn't mean your case is resolved—it simply confirms the IRS has your submission and is beginning investigation.
The IRS will assign your case to a specialized identity theft unit for review. Investigators will compare the fraudulent return against your legitimate tax information, verify your identity using the documentation you provided, and work to remove the fraudulent activity from your account. During this process, the IRS may contact you for additional information or documentation, so respond promptly to any requests.
Resolution typically takes approximately 120 days under normal circumstances, though the IRS has acknowledged that pandemic-related backlogs have extended average resolution times to 582 days in some cases. You'll receive a letter when your case is fully resolved. The IRS will remove fraudulent returns from your account, correct your tax record, and place protective markers to help prevent future identity theft.
If you were entitled to a refund but it was stolen by the identity thief, the IRS will issue your legitimate refund once they've verified your identity and corrected your account. However, this process is separate from and occurs after the identity theft investigation is complete.
FAQs
Can I file Form 14039-B electronically?
No, Form 14039-B must be submitted by mail, fax, or in person at an IRS Taxpayer Assistance Center with an appointment.
Does my business need to file a police report before submitting Form 14039-B?
A police report is not required but is helpful if you have one. Include a copy with your Form 14039-B submission.
Can I file this form if I suspect identity theft but haven't received an IRS notice yet?
Only file if you've received actual IRS notices about fraudulent activity. Suspicion alone without IRS notification doesn't warrant filing.
What if I made a mistake on the form after mailing it?
Contact the IRS identity theft unit immediately. Do not submit a duplicate form—call to explain the error and ask how to submit corrected information.
Will filing Form 14039-B delay my legitimate business tax return processing?
Yes, identity theft cases typically delay return processing and refunds while the IRS investigates and verifies your identity.
Can I check the status of my Form 14039-B submission online?
No online tracking system exists for Form 14039-B. You must wait for IRS correspondence or call the identity theft hotline at 800-908-4490.
What if someone filed a W-2 using my business EIN but didn't file a fraudulent return?
This still qualifies as business identity theft. File Form 14039-B and explain the specific circumstances in Section D.
