Tax-related identity theft: when someone else files in your name
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Key takeaways
Tax-related identity theft happens when someone uses your personal information to file a fraudulent tax return or claim a refund that isn’t theirs.
A common warning sign is being unable to e-file because the IRS says a return has already been filed under your information.
The IRS offers an Identity Protection PIN specifically to help prevent this type of fraud going forward.
Immigrants may be particularly targeted by fake IRS impersonators who exploit unfamiliarity with the U.S. tax system.
Remitly never contacts customers about tax matters, refunds, or IRS-related issues of any kind.
If the IRS says a return has already been filed under your name, that’s a sign of tax-related identity theft. Here’s what it means and what to do next.
What is tax-related identity theft?
Tax-related identity theft happens when someone uses personal information, typically a Social Security number or ITIN, to file a fraudulent tax return and claim a refund that doesn’t belong to them. According to the IRS(opens in new window), this is a specific category of identity theft with its own dedicated resources and reporting process, since it intersects with the tax filing system in ways that general identity theft guidance doesn’t fully address.
Common warning signs
The clearest sign is attempting to file a tax return electronically and being rejected because the IRS system indicates a return has already been filed using the same information. An unexpected notice from the IRS about a return that wasn’t filed, income from an employer never worked for, or a refund never requested can also signal a problem. Any of these should prompt immediate attention rather than being dismissed as an administrative error.
Why immigrants are frequently targeted by tax scams specifically
Beyond genuine tax-related identity theft, immigrants are frequently targeted by scammers impersonating the IRS, exploiting unfamiliarity with how the actual U.S. tax system communicates with taxpayers. It’s worth knowing that immigrants of every status do pay federal, state, and local taxes, according to this Remitly overview of immigrant business tax obligations(opens in new window), which is exactly why scammers exploiting confusion about tax obligations can be so effective against this audience. The real IRS initiates most contact by mail, not by phone or a threatening, unexpected call demanding immediate payment, and the agency never demands payment via gift card, cryptocurrency, or wire transfer under threat of immediate arrest.
How Remitly protects you
Remitly never contacts customers about tax matters, IRS notices, or refunds of any kind, since this falls entirely outside what Remitly does as a money transfer service. A message claiming to be from Remitly about a tax refund, an IRS issue, or a required tax payment did not come from Remitly.
Red flags to watch for
A call or text claiming to be the IRS, demanding immediate payment or threatening arrest. The real IRS does not initiate contact this way.
Being asked to pay a tax debt using a gift card, cryptocurrency, or wire transfer. The IRS never requires payment through these specific methods.
An e-filed return rejected because one was “already filed” under the same information. This is one of the clearest signs of tax-related identity theft.
An unfamiliar tax preparer who guarantees an unusually large refund before even reviewing actual documents. This can indicate a preparer engaging in fraudulent activity using stolen information.
The role of an ITIN acceptance agent in verifying your situation
Navigating tax-related identity theft while using an ITIN rather than a Social Security number often benefits from working with a Certified Acceptance Agent, someone specifically authorized to help verify ITIN-related documentation, which can help ensure an identity theft affidavit and any related paperwork is submitted correctly the first time, reducing the back-and-forth that can otherwise extend a stressful recovery process.
What the IRS actually does versus what a scammer claims
Understanding the real IRS process helps in spotting a fake one immediately. The genuine IRS almost always initiates contact by mail first, provides a clear appeals process for disagreeing with a notice, and never threatens immediate arrest or demands an unusual payment method over the phone. Any contact that skips these normal steps and goes straight to threats and urgent demands is behaving in a way the real IRS simply doesn’t, regardless of how official it sounds.
Filing your taxes early as a simple protective habit
One of the most straightforward ways to reduce the risk of tax-related identity theft is filing a return as early in the tax season as reasonably possible, since a thief needs to file a fraudulent return using stolen information before the real filing happens in order to succeed. Getting documents together early and filing promptly closes this window of opportunity considerably faster than waiting until closer to the deadline.
Keeping copies of everything you submit to the IRS
Submitting an identity theft affidavit or any related documentation to the IRS is worth keeping a complete copy of for personal records, along with proof of mailing if sent by post. This documentation becomes essential for following up on a delayed response or demonstrating exactly what was submitted and when.
Why an Identity Protection PIN is worth requesting proactively
Even without any current sign that a tax identity has been compromised, requesting an Identity Protection PIN from the IRS proactively adds a meaningful layer of prevention, since this unique number must be included on any return filed under that information going forward. Many identity theft victims wish they had requested one before their specific incident occurred, making it a reasonable precaution for anyone who wants to reduce this particular risk in advance.
Common questions about tax-related identity theft
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What should I do if my e-filed tax return is rejected because one was already filed?
File Form 14039, the Identity Theft Affidavit, either through IdentityTheft.gov or by mail as instructed by the IRS, and continue with a legitimate paper return as guided by the IRS’s identity theft resources.
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How can I prevent tax-related identity theft going forward?
Consider requesting an Identity Protection PIN from the IRS, a unique number that must be included on a return to verify it’s genuinely being filed by the correct person, specifically designed to prevent this type of fraud in future tax years.
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Does tax-related identity theft only affect people with a Social Security number?
No. It can also affect people filing with an ITIN, since any identifying number used on a tax return can potentially be misused if it falls into the wrong hands, making the same protective steps relevant regardless of which identifier is used.
In Summary
Tax-related identity theft can feel especially unsettling because it involves both personal identity and a relationship with a government agency, but the IRS has clear, dedicated resources for exactly this situation, and knowing the warning signs helps in catching it early.
This publication is provided for general information purposes only and is not intended to cover all aspects of the topics discussed herein. This publication is not a substitute for seeking advice from an applicable specialist or professional. The content in this publication does not constitute legal, tax, or other professional advice from Remitly or any of its affiliates and should not be relied upon as such. While we strive to keep our posts up to date and accurate, we cannot represent, warrant, or otherwise guarantee that the content is accurate, complete, or up to date.