How to Complete IRS Form 14039 for Tax Identity Theft Victims

If you are the victim of identity theft, you can alert the IRS by filing Form 14039. This guide explains what you need to know. 

This article explains when you’d want to use this form, how to properly complete and submit it, what happens after you send it to the IRS, and things you can do to avoid becoming the victim of tax ID theft. 

A lot of what will be discussed are things you can do on your own, but if you want help, it’s time to consult with a tax professional, like those from the W Tax Group. We can help you deal with any tax problems you are facing.

What Is Form 14039?

IRS Form 14039, Identity Theft Affidavi,t exists for individuals who know (or suspect) that someone has used their personal information to fraudulently file a tax return or improperly claim a tax benefit. 

Form for Business Tax Identity Theft

Business taxpayers who believe they’re the victim of tax identity theft (or individuals who believe someone is filing a business tax return using their identity) should file IRS Form 14039-B, Business Identity Theft Affidavit.

When to Use IRS Form 14039 

The IRS has multiple forms, notices, and letters that apply to tax identity theft so it can be confusing as to when you’ll need to use Form 14039. That being said, you’ll generally need to complete this form in two main situations.

1. You suspect or know someone who used your identity to file a fraudulent tax return. For example, you tried to e-file your tax return, but the IRS rejected the e-filing because they already accepted a tax return using your SSN. 

1. The IRS believes you may be the victim of identity theft and has proactively reached out to you (typically by mailing you a letter or notice) and asked that you complete Form 14039 and return it to them.

There are also two situations where you might think you need to complete Form 14039, but you shouldn’t. The first is if you suspect (or confirm) that you’re the victim of non-tax-related identity theft. For instance, you find out that someone applied for a credit card under your name or your bank was hacked, and your personal information was compromised. In these types of situations, the IRS recommends contacting the relevant authorities, such as the three major credit reporting bureaus and the Federal Trade Commission.

The second is if the IRS sends you a notice relating to potential identity theft, but the IRS asks that you do something other than complete Form 14039. A good example of this is if you were to get IRS Letter 5071C in the mail. This notice indicates the IRS suspects you might be a victim of tax identity theft but wants to confirm this suspicion by first asking that you verify your identity. 

Filling Out the 14039 Form 

Section A is where you identify the reason(s) for submitting the form, such as you, someone else, or a dependent are the victims of tax ID theft or that you received a letter or notice from the IRS (such as a CP2000 notice) asking that you complete this form.

Section B is your opportunity to tell the IRS what happened that made you think (or confirm) that tax identity theft has occurred. You’ll check the appropriate box, then explain in the space provided what happened. If you need more space, you can continue your explanation on a separate sheet of paper. You’re also encouraged to attach copies of relevant documents to Form 14039, such as past tax returns, IRS notices, and a government-issued ID.

In Section C, you’ll provide the contact and personal information of the ID theft victim while in Section D, you’ll identify the tax years that may have been affected by the identity theft.

Section E is where you’ll sign, under penalty of perjury, that the information you’re offering is true, complete, correct, and being submitted in good faith.

The last part of Form 14039 is Section F. You only need to complete it if you’re filling out Form 14039 on someone else’s behalf. Here, you’ll state why you’re completing the form and provide additional information or documentation if required. 

How to Submit Form 14039 

You can submit Form 14039 online, by fax, or by mail. Online is preferable, but whichever method you decide to use, only submit one form to the IRS. The instructions for each submission method are provided on Form 14039, and the exact process will depend on what prompted you to complete this form. 

What Happens After Filing IRS Form 14039 

After you send your form to the IRS, they should mail you a letter confirming receipt. The IRS then sends your form to the IRS’ Identity Theft Victim Assistance organization where someone with identity theft training will review your submission and try to resolve your ID theft case. This includes taking actions such as:

• Confirming you were the victim of tax identity theft.
• Identifying the scope of the theft.
• Seeing if anyone else has been affected by the theft.
• Removing fraudulent or incorrect information from your tax records.
• Ensuring the relevant tax returns have been properly processed.
• Placing an identity theft designation on your tax account to help protect you from future tax identity theft attempts.

After the IRS processes your case, they will contact you to let you know and explain the steps taken. You should receive this notification within 120 days of the IRS’ receipt of Form 14039, although delays are possible. Unless you need to provide updated information to the IRS, there’s nothing else you need to do after you submit Form 14039.

In situations where the identity theft has resulted in the IRS trying to collect an unpaid tax balance from you that you don’t owe, you can call the IRS number provided on the letter or notice to explain the situation. Ideally, this shouldn’t happen, as the IRS should be able to make the necessary corrections and changes to your tax account in a timely fashion. But delays happen and the part of the IRS that processes your tax returns and sends out notices of any unpaid taxes may not be communicating with the part of the IRS that investigates your tax identity theft case.

If you’re having trouble working with the IRS due to your identity theft creating confusion and complexity to an expected tax refund or outstanding tax debt (plus penalties), then it may be a good idea to consult with a tax pro. They can help you figure out what’s going on and how to most effectively communicate with the IRS to resolve the matter as quickly and painlessly as possible.

How to Avoid Tax Identity Theft 

The best way to deal with identity theft is to prevent it in the first place. One of the best ways to do this is to get an IP PIN (identity protection PIN). This is a six-digit number that you’ll use when you file your next tax return. Only you and the IRS know this number, so it makes it far more difficult for someone else to file a tax return claiming to be you. If you’re a confirmed victim of tax identity theft, the IRS will automatically issue you an IP PIN after placing you in the Identity Protection PIN Program.

To maintain the security and integrity of the IP PIN, the IRS issues you a new one each year when they mail you a CP01A notice. You can proactively obtain an IP PIN in three ways. First, you can get one online using your online IRS account (ID.me). Second, you can fill out IRS Form 15227, Application for an Identity Protection Personal Identification Number and file it with the IRS by mail or by fax. Third, you can request one through an in-person appointment at your local Taxpayer Assistance Center. Besides using an IP PIN, other best practices for securing your taxes from ID theft include:

• Protect your SSN by providing it only to trusted entities and only when necessary.
• Setting up multi-factor authentication when using online services, especially those involving tax preparation.
• Creating strong passwords for online accounts.
• Ignoring phishing and other scam attempts sent by email, text, and phone.
• Reporting any potential tax scams to the IRS.
• Reading all correspondence from the IRS, which can provide an early warning when someone else tries to steal your identity.
• Consulting with a reputable tax professional when seeking tax assistance. 

Need Help With Your 14039 IRS Form? 

In most cases, you can probably handle the 14039 Form completion and submission process by yourself. However, if it turns out you’re the victim of tax identity theft, you could find yourself dealing with a major financial mess that can be cumbersome to fix. This could require you to provide additional information to the IRS, both by mail and over the phone. 

In these cases, you should consider consulting with the W Tax Group. We can communicate with the IRS on your behalf to help you through the process of clearing your name. We can also provide guidance on preventing this from happening in the future. We offer free consultations, which you can schedule online.