What to do if someone uses your stolen social security number to file a fraudulent tax return

Your CPA calls to tell you they are not able to e-file your tax return because it was rejected saying the return has already been filed.  You had never filed, nor did you authorize anyone to file the returns before now.  What does this mean?  Most likely you are a victim of identity theft.  Identity theft occurs when someone uses your stolen social security number to file a fraudulent tax return on your behalf.  So now what?  Here are the steps you should take:

  1. Call the IRS or complete a Power of Attorney and authorize your CPA to call the IRS on your behalf.  You will need to confirm that a return was in fact already filed.
  2. File a police report
  3. File a complaint with the Federal Trade Commission.
  4. Contact a credit bureau (does require fee)
  5. Complete IRS Form 14039

As a precautionary step, KMM recommends all clients complete IRS Form 14039 even if you have not experienced theft issues and reminds you not to email documents containing your social security number.  KMM provides a secure web based client portal for all clients to share and exchange information with us.  For more information please contact Sarah Nuttall, Manager.