IRS Form 14039-B (2021): Business Identity Theft Affidavit

What IRS Form 14039-B (2021) Is For

IRS Form 14039-B (2021) is used to report identity theft that affects a business, including situations where an identity thief has misused an employer identification number, business information, or identifying information to file false tax forms or business-related returns. The Internal Revenue Service uses this identity theft affidavit to verify the claim, correct affected records, and protect the entity from further fraud. Businesses and other entities rely on this form when unauthorized parties attempt to file under their name or access sensitive information.

When You’d Use IRS Form 14039-B (2021)

You would use IRS Form 14039-B (2021) when the Internal Revenue Service notifies you of suspicious activity involving your business records.

• Receiving IRS notices about a tax return your business did not file: This situation indicates that someone may have used your employer identification number or business name to submit a fraudulent income or employment return.
  
  
• Getting letters addressed to your company about employment or tax obligations you did not incur: These notices show that an unauthorized person may be attempting to create or operate a business under your identity.
  
  
• Discovering fraudulent activity involving employees or payments your business never issued: This type of fraud suggests that someone may have filed business-related returns or employment documents without your knowledge.
  
  
• Being contacted about incorrect business information or activity linked to your address or account: This indicates that another person may have used your sensitive information to file or claim tax benefits.
  
  
• Receiving an example of a mismatch between business data and IRS records: This scenario means the IRS may have detected inconsistencies that often result from identity theft affecting business operations or income reporting.

Learn about common payroll tax issues and fraud that may impact your business if sensitive payroll information is compromised.

Key Rules or Details for 2021

These rules outline the Internal Revenue Service's (IRS) procedures for processing IRS Form 14039-B (2021) and the information each entity must provide.

• Signing the identity theft affidavit: The form must be signed by a person who has legal authority to act on behalf of the entity, and the signer must verify that all details are accurate.
  
  
• Supporting documents must be included to confirm identity and business status: The Internal Revenue Service requires clear documents such as articles of incorporation, trust papers, business letters, or other evidence that proves the filer can access and manage the accounts.
  
  
• Accurate business information must be provided for processing: The entity must include correct identifying information, including employer identification number, business address, and tax history, so that the IRS can review the file properly.
  
  
• The form must be submitted with secure and readable documents: All documents must be legible and free from sensitive data errors so the Internal Revenue Service can confirm the identity and protect the business from further fraud.
  
  
• The filer must respond to any IRS letter requesting additional information: If the IRS asks for more documents or clarification, the person filing must submit the requested materials promptly to avoid delays.

Understanding the IRS collection process for business tax debts can help you respond quickly if your account is targeted by identity thieves.

Step-by-Step (High Level)

1. Review notices to identify fraudulent activity: Start by checking all IRS letters, bank alerts, and company records to confirm that business information or assets have been misused.
   
   
2. Complete all business identification sections: Enter accurate data, such as the employer identification number, business address, and employment details, so the Internal Revenue Service can verify the entity.
   
   
3. Describe the identity theft incident with specific details: Provide a clear explanation of what occurred, including dates, accounts affected, and any search or resources used to identify the issue.
   
   
4. Attach the required documents to support the claim: Submit readable documents that show authority to act for the entity and include any evidence related to the fraud.
   
   
5. Provide contact information and confirm accessibility: Enter a phone number, company address, and any additional steps the IRS should take to reach the responsible person if further information is needed.
   
   
6. Submit the form by mail or fax: Send the form to the correct address or fax number listed on the IRS site, and keep copies of all documents for company records.
   
   
7. Visit the IRS site for updated processing links or page last reviewed details: Check for updated instructions, treasury resources, or services that may apply to your filing.

Consider appointing a power of attorney for your business if you need a trusted professional to communicate with the IRS on your behalf.

Common Mistakes and How to Avoid Them

These standard errors can slow the IRS review of IRS Form 14039-B (2021) and increase the risk of continued identity theft.

• Submitting duplicate forms for the same incident: You should send only one form per identity theft event because duplicate filings force the Internal Revenue Service to recheck records and extend processing time.
  
  
• Providing unclear or incomplete documents: You should supply readable documents with complete business records, as unclear information prevents the IRS from verifying the employer identification number and confirming your business identity.
  
  
• Exposing sensitive data during preparation: You should remove or secure sensitive information before filing because identity thieves may exploit any unprotected records or financial details.
  
  
• Allowing an unauthorized person to sign the affidavit: You should ensure that only an authorized individual with proper authority signs the affidavit because the Internal Revenue Service will reject filings signed on behalf of an entity without the required authorization.
  
  
• Ignoring IRS requests for additional information: You should respond to all IRS letters promptly because failing to provide requested evidence or clarification will delay your claim and slow the identity theft investigation.

Monitor ongoing account activity with our IRS Account Transcript Service to catch suspicious changes as soon as they occur.

What Happens After You File

After IRS Form 14039-B (2021) is submitted, the Internal Revenue Service reviews the documents, verifies the business information, and compares the records with any fraudulent tax returns or filings. The IRS then updates the account, protects the employer identification number, and issues a letter confirming receipt. Processing can take several months while identity theft details are reviewed, and the IRS may contact the business for additional information before releasing any corrected refund or account adjustment.

FAQs

Can I use tax preparation software to submit this form?

Tax preparation software cannot submit the form because IRS Form 14039-B (2021) must be mailed or faxed directly to the Internal Revenue Service with supporting documents.

Should I enable two-factor authentication for my business accounts?

Two-factor authentication is recommended because it helps protect sensitive information, accounts, and identifying details from identity thieves who target businesses.

Does the form replace Form 14039 for individuals?

This form does not replace Form 14039 because IRS Form 14039-B (2021) applies only to business identity theft, while Form 14039 is used for individual identity theft cases.

What if I see a locked padlock icon on IRS services online?

The locked padlock icon indicates that the page is secure, which helps protect sensitive data when accessing IRS services or submitting information through secure links.