Tax Identity Theft: Protecting Yourself as a Senior Filer (2025 Guide)

Warning Signs: How to Know If You’re a Victim

Tax identity theft often comes as a complete surprise. Be on high alert if you encounter any of these red flags:

• Your tax return is rejected when you try to e-file. This is the most common sign. The rejection notice will state that a return has already been filed using your Social Security number.
• You receive a tax transcript or an IRS notice in the mail that you did not request.
• You receive a notice from the IRS that you owe additional tax or have a refund offset for a year you did not file a return.
• IRS records show you received wages or other income from an employer you never worked for.

Your Proactive Defense: How to Prevent Tax Fraud

The best way to deal with tax identity theft is to prevent it from happening in the first place. Take these proactive steps.

1. Your #1 Tool: Get an IRS Identity Protection PIN (IP PIN)

This is the single most effective way to block tax fraudsters. An IP PIN is a six-digit number known only to you and the IRS. Even if a thief has your Social Security number, they cannot file a return without your IP PIN. You can voluntarily opt-in to the IP PIN program on the IRS website. It’s free and provides a powerful layer of security.

2. Recognize and Avoid IRS Impersonation Scams

Criminals try to trick you into giving up your personal information. Remember these facts:

• The IRS initiates most contact through physical mail delivered by the USPS.
• The IRS will NEVER contact you by email, text message, or social media to ask for personal or financial information. This is always a phishing scam.
• The IRS will NEVER call you with threats of jail time or demand immediate payment with a gift card, prepaid debit card, or wire transfer. This is always a phone scam.

3. Practice Smart Digital and Physical Security

• Use strong, unique passwords for all your financial and email accounts.
• Be cautious using public Wi-Fi for sensitive activities like banking or tax preparation.
• Shred all sensitive paper documents before throwing them away.
• Do not carry your Social Security card with you. Keep it in a secure location at home.

A Step-by-Step Recovery Plan: What to Do If You’re a Victim

If you suspect you’re a victim of tax identity theft, act quickly. Do not panic; follow these steps:

1. File an Identity Theft Affidavit: Complete and submit IRS Form 14039, Identity Theft Affidavit. This officially reports the fraud to the IRS.
2. Respond Immediately to IRS Notices: Call the number provided on any notice you receive from the IRS.
3. Report the Theft to the FTC: File a report with the Federal Trade Commission at IdentityTheft.gov. This creates an official recovery plan.
4. Contact the Credit Bureaus: Place a fraud alert or credit freeze with one of the three major credit bureaus (Equifax, Experian, TransUnion). That one will notify the other two.
5. Continue to File Your Taxes: You must still file your legitimate tax return. You will likely need to file by mail while the IRS processes your case.