Stolen Refund Checklist
Overview
A stolen refund occurs when someone files a tax return using your Social Security number and claims a refund before you file your legitimate return. This is tax-related identity theft, specifically targeting refunds. The criminal obtains your SSN and files early in the filing season, often with inflated deductions or false dependents, and the Internal Revenue Service processes the refund quickly before you discover the fraud.
Who This Checklist Applies To
This checklist applies to you if your e-filed return was rejected due to a duplicate Social Security number, if you received an IRS notice stating someone else filed using your SSN, or if the IRS issued a refund you never received. This checklist does not apply if you authorized someone to file on your behalf, if your federal tax refund was reduced by an IRS offset for back taxes or child support, or if you are disputing refund allocation between spouses using Form 8379.
What Matters Most
The Internal Revenue Service focuses on verifying your identity, removing the fraudulent return from your account, and protecting your tax record going forward. What changes outcomes is how quickly you report the theft and whether you file your legitimate return promptly. Filing both Form 14039 and your legitimate tax return together creates a clear timeline that proves you are the true taxpayer.
Step-by-Step Checklist
Step 1: Report Identity Theft to the Federal Trade Commission
File a report at IdentityTheft.gov within 24 hours of discovering the fraud. This creates an official record and generates your Identity Theft Report, which the IRS requires as documentation when you submit your claim for a stolen refund.
Step 2: Obtain Your Credit Reports From All Three Bureaus
Request free credit reports from AnnualCreditReport.com and review them for fraudulent accounts, loans, or inquiries. This step determines whether the identity theft extends beyond your tax refund, helping you document the full scope of the fraud.
Step 3: Gather Government Identification Documents
Collect your birth certificate, state ID, passport, or other government-issued identification before contacting the IRS. The Internal Revenue Service will require photocopies or digital images of these documents to verify your identity when you file Form 14039.
Step 4: Complete IRS Form 14039 Identity Theft Affidavit
Complete Form 14039 online at irs.gov/dmaf/form/f14039 or print the PDF version from the IRS site. This form officially notifies the IRS that you are a victim of tax-related identity theft and triggers the investigation process for your case.
Step 5: File Your Legitimate Tax Return on Paper
Prepare your legitimate tax return with the correct filing status and file it on paper since your e-file will be rejected. You can either attach Form 14039 to the back of your paper return or submit Form 14039 online separately and mail your return separately.
Step 6: Do Not Attempt Electronic Filing Again
If your return was rejected due to a duplicate Social Security number, do not try to e-file again. The automated system will automatically reject duplicate attempts, which creates additional processing delays and confusion in your case file with the IRS.
Step 7: Request an Identity Protection PIN for Future Protection
Apply for an IP PIN online through your IRS Online Account at irs.gov/ippin after your case begins processing. This six-digit number prevents anyone else from filing a return using your SSN in future tax years and is required on all future returns.
Step 8: Keep Detailed Records of All IRS Communications
Document every interaction with the IRS, including the date, time, representative's name, and discussion topics. Multiple Internal Revenue Service employees may review your case over several months, and detailed records prevent miscommunication and help track progress.
Step 9: Wait for IRS Acknowledgment Letter
The IRS will send an acknowledgment letter within approximately 30 days confirming receipt of your Form 14039. Do not submit duplicate forms or follow up repeatedly during this initial acknowledgment period, as this creates processing delays.
Step 10: Understand Resolution Timeframes
Identity theft cases officially take 120 days to resolve, according to IRS guidelines; however, current processing times average 582 days or longer due to increased case volumes. Check the processing status dashboard at irs.gov for current timeframes before contacting telephone assistance.
Step 11: Report Fraud to Your Financial Institutions
Notify your bank and credit card companies immediately if the stolen refund was deposited into an unfamiliar bank account via direct deposit. Provide them with your IRS case number once you receive it, and request that they flag the transaction for potential recovery.
Step 12: Consider Filing Additional Reports if Fraud Continues
File a police report or contact your state attorney general if you discover ongoing fraudulent activity beyond the tax return. These additional reports create documentation that may support criminal investigation options and strengthen your identity theft case through the Department of the Treasury.
Common Mistakes to Avoid
● Filing your legitimate return without Form 14039: The IRS treats both returns as potentially fraudulent if you file without the identity theft affidavit, which doubles your investigation time instead of streamlining resolution. You must file Form 14039 to trigger the specialized identity theft investigation process that clears fraudulent returns from your account.
● Attempting to e-file after receiving a duplicate rejection: Electronic filing will automatically reject your return again if another return already exists under your Social Security number, creating additional rejection notices that confuse your case. You must file on paper and include Form 14039 to begin proper resolution.
● Not requesting an IP PIN after case resolution: Without an IP PIN, your Social Security number remains vulnerable to the same fraud in subsequent tax years, and criminals often target victims repeatedly. The IP PIN is free and must be requested, even after your stolen refund case is closed, to protect future filings.
● Following instructions for IRS letters you did not receive: If you receive IRS Letter 5071C, 4883C, or 5747C, follow the specific instructions in that letter and do not file Form 14039. These letters have different verification procedures, and filing Form 14039 when you receive these letters creates duplicate processing and delays resolution.
● Confusing stolen refund checks with identity theft: If you received your refund check but it was stolen from your mail, this constitutes check fraud, requiring Form 3911 for a refund trace, not Form 14039. Contact the Bureau of the Fiscal Service and request a replacement check rather than filing an identity theft affidavit with the Internal Revenue Service.
When to Seek Professional Help
Professional help becomes critical when the IRS rejects your return a second time, when you receive a balance due notice related to the fraudulent return, or when multiple tax years show fraudulent filings. The Taxpayer Advocate Service and Low-Income Taxpayer Clinics can file appeals, coordinate responses across various years, and advise on dispute resolution if the IRS indicates that the stolen refund cannot be recovered.
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This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance.