IRS Issues New Guidance to Combat Tax-Related Identity Theft

The IRS has renewed its campaign to protect taxpayers from tax-related identity theft, issuing updated guidance as part of its Security Summit initiative. Officials warn that criminals increasingly target personal or financial information to file fraudulent returns and steal refunds. The move underscores the agency’s effort to strengthen defenses before the filing season.

Why Taxpayers Are at Risk

According to the IRS, the rise in data breaches has fueled opportunities for identity thieves, giving them access to stolen Social Security numbers and other sensitive records. Once obtained, this personal information can be used to open false accounts or submit a fraudulent tax return. The IRS stresses that vigilance is the first step in prevention.

New IRS Tools to Safeguard Your Tax Return

To combat rising identity theft cases, the IRS is highlighting two key tools: the Identity Protection PIN (IP PIN) and the IRS Online Account. Both are designed to protect sensitive personal information and reduce the risk of a fraudulent return.

IP PINs and Tax Return Security

An IP PIN is a six-digit number known only to the taxpayer and the IRS. It must be used when filing a tax return and prevents anyone else from submitting a return under the same Social Security number. The IRS says the program is voluntary but strongly recommended for individuals who want to protect their tax accounts.

Online Accounts and Personal Protection

The IRS also urges taxpayers to create an IRS Online Account through IRS.gov. This tool provides secure financial information access and helps prevent identity thieves from opening false profiles. Establishing an online account adds another safeguard for refunds and reduces the risk of stolen personal data.

When to File an Identity Theft Affidavit

Taxpayers who believe their information has been misused should act quickly by submitting an Identity Theft Affidavit, Form 14039. This form alerts the IRS to suspected related identity theft and allows the agency to flag the account for further protection.

Filing the Identity Theft Affidavit

The affidavit can be filed online through IRS.gov or by mail. Taxpayers must provide identifying details and explain why they suspect a fraudulent return was filed. Once received, the IRS reviews the claim, works to secure the account, and issues instructions on the next steps.

IRS Guidance for Confirmed Victims

Victims enrolled in the IRS Identity Theft Victim Assistance Program automatically receive an Identity Protection PIN each year. The IRS also advises monitoring credit reports and bank accounts for unusual activity, keeping records of all agency mail, and responding only through official contact channels.

Warning Signs of Identity Theft

The IRS says taxpayers should remain alert to warning signs indicating their data has been compromised. Recognizing these red flags early can help limit damage and speed up resolution.

Common IRS Red Flags

• A rejected tax return because one has already been filed using the same Social Security number.
  
  
• IRS mail about income from an employer you don’t recognize.
  
  
• Notices about changes to your tax accounts that you did not request.

Financial Red Flags Beyond the Tax Return

• Unexpected activity on a credit report.
  
  
• Unauthorized charges or withdrawals from a bank account.
  
  
• Suspicious phone calls, texts, or emails demanding personal or financial information.

The IRS advises that anyone experiencing these warning signs should immediately check their credit, file an identity theft affidavit, and contact the agency through official IRS.gov channels.

Protecting Your Accounts Before Filing Season

The IRS recommends that taxpayers proactively protect their information before submitting a tax return. Acting early can reduce the risk of delays, denied refunds, or exposure to identity thieves.

Security Steps Every Taxpayer Should Take

• Monitor your credit report regularly for suspicious activity.
  
  
• Review bank accounts and tax refund status for unauthorized changes.
  
  
• Use strong, unique passwords and enable multi-factor authentication where possible.
  
  
• Avoid clicking links in unsolicited emails or responding to scam phone calls.

How to Contact the IRS for Help

Taxpayers should use only official IRS.gov channels when seeking support. The agency warns against responding to unexpected mail or calls requesting sensitive personal information. To ensure accuracy, confirm all guidance comes from the agency’s verified site.

Official IRS Sources for Identity Theft Assistance

The IRS urges taxpayers to rely only on official resources when dealing with identity theft or suspected fraudulent returns. 

• IRS: Identity Theft Central
• IRS: Get an Identity Protection PIN
• IRS: Identity Theft Guide for Individuals

The agency reminds taxpayers to verify all instructions on IRS.gov and check the “page last reviewed or updated” notice to confirm the latest information.