Form 14039 Filings Jump as Tax Scams Hit More Filers

More taxpayers are filing Form 14039 as tax identity theft continues to disrupt filing seasons and delay refunds. New IRS and Taxpayer Advocate data show sustained fraud activity and a growing backlog of identity theft cases affecting hundreds of thousands of filers.

IRS Reports Rising Identity Theft Affidavit Filings

The IRS is seeing continued demand for the Identity Theft Affidavit, a key step for taxpayers dealing with tax-related fraud. More than 228,000 Forms 14039 were filed in 2022, followed by a sharp rise to over 294,000 Identity Theft Victim Assistance (IDTVA) case receipts in fiscal year 2023.

Although filings eased slightly in 2024, the IRS still recorded about 228,000 cases, showing that tax identity theft remains widespread. At the same time, more than 470,000 cases remain in the agency’s inventory awaiting review, underscoring ongoing pressure on IRS processing systems.

Families and Lower-Income Filers Face Greater Risk

Federal data indicates that identity theft disproportionately affects lower-income taxpayers. The Taxpayer Advocate Service reports that roughly 64 percent of resolved IDTVA cases in 2024 involved taxpayers with income at or below 250 percent of the federal poverty level.

Families with dependents also face recurring issues. In many cases, parents only discover fraud after their tax return is rejected because a dependent’s Social Security number was already used on another return, a common form of tax-related identity theft.

What Form 14039 Does for Tax Identity Theft Victims

Form 14039 allows taxpayers to formally report identity theft to the IRS when their personal information is used without authorization. The form is typically required when a taxpayer cannot e-file due to a duplicate return, receives IRS notices tied to unknown income, or sees suspicious activity linked to their Social Security number.

Submitting the Identity Theft Affidavit alerts the IRS to potential fraud and triggers a case review by identity theft specialists. The agency works to remove fraudulent returns, restore the taxpayer’s account, and process the correct tax return.

Identity Protection PIN Adds Another Layer of Security

Once a case is confirmed, many taxpayers are enrolled in the Identity Protection PIN program. This six-digit code must be included on future tax returns and helps prevent unauthorized filings tied to stolen personal information.

The IRS encourages eligible taxpayers to enroll in the IP PIN program even before fraud occurs as a preventive measure against tax scams.

IRS Backlog Extends Wait Times for Refunds

While the IRS states that identity theft cases should generally be resolved within 120 days, actual timelines are much longer. Recent reports show average resolution times exceeding 600 days, reflecting the volume of cases and limited processing capacity.

The IRS processing dashboard indicates that staff are still working through Form 14039 submissions from late 2024. For affected taxpayers, this often means delayed refunds, repeated document requests, and extended verification periods.

Data Breaches and Phishing Fuel Ongoing Fraud

Tax identity theft often begins with the theft of personal data. The IRS and its Security Summit partners warn that phishing emails, fake tax preparer schemes, and data breaches continue to expose taxpayer information.

In one recent period, nearly 300 data breaches were reported, affecting up to 250,000 taxpayer records. Many victims only learn of the fraud when their return is rejected as a duplicate, making early detection difficult.

Warning Signs Prompt Action on Form 14039

Taxpayers should watch for clear signs of identity theft, including IRS notices for returns they did not file, rejected e-file submissions, or unexpected tax transcripts. These issues can disrupt filing and delay access to refunds.

Filing Form 14039 promptly when instructed can help start the resolution process. Taxpayers are also advised to monitor their IRS accounts, review credit reports, and consider identity protection tools to reduce future risk.

Sources

• IRS – When to File an Identity Theft Affidavit
• IRS – How Identity Theft Victim Assistance Works
• Taxpayer Advocate Service – 2024 Annual Report to Congress

‍By William Mc Lee, Editor-in-Chief & Tax Expert—Get Tax Relief Now