How To Prevent A False Tax Return In Your Name
Having a false tax return filed in your name delays your refund and costs you time and energy. Here's how to prevent it — quickly and easily.
Background
Someone who has your Social Security Number can file a fraudulent tax return and claim a refund in your name. This is called taxpayer identity theft, and it's more common than most people realize.
Consequences
If a fraudulent return is filed in your name, you're looking at two main headaches.
Delayed Refund
With a false return already on file, you can't e-file your own legitimate return. Instead, you must mail a paper return — and the IRS takes an extremely long time to process paper. Filing on paper alone can delay your refund by several months. Add extra time for the IRS to verify that your refund claim is legitimate, and you're looking at a significant wait.
Time and Energy
You'll need to complete IRS Form 14039, Identity Theft Affidavit and mail it in with your return, then manage ongoing IRS correspondence until the matter is resolved. The IRS also provides a full Taxpayer Guide to Identity Theft with additional steps.
How to Prevent It
There are two ways to prevent a false tax return: file early and use an Identity Protection PIN.
File Early
File your legitimate return early and beat fraudsters to it. The IRS typically starts accepting returns in late January to mid-February. That's a good incentive to keep your tax records organized rather than scrambling in April.
Use an Identity Protection PIN
An Identity Protection PIN (IP PIN) shuts out fraudsters altogether. If an IP PIN is on file for you, no one can file a return without it — not even you. Get a federal IP PIN, and check whether your state offers one too.
Federal IP PIN
Get your federal IP PIN through the IRS IP PIN tool. Your spouse should get one as well. The tool is available mid-January through mid-November each year.
Once you have an IP PIN, the IRS automatically generates a new one every year. You'll need to log back into the tool after mid-January to retrieve your updated PIN before filing.
One important detail: IP PINs are issued for a calendar year, not a tax year. The IRS confirmation reads, "Congratulations, your 2022 Identity Protection PIN is XXXXXX" — not "your tax year 2022 IP PIN." This matters more than it sounds.
It means you use your 2022 IP PIN for any return you file during calendar year 2022 — including your tax year 2021 return or any prior-year returns filed that year. You would not use your 2021 IP PIN to file a tax year 2021 return if you're filing it in 2022. Even Question 11 of the IRS IP PIN FAQs isn't crystal clear on this. Lesson learned the hard way: trying to use the prior-year PIN will get your return rejected.
State IP PIN
Some states now offer their own IP PINs. Search "[your state] identity protection PIN" to find out if yours does.
Ready to put this into practice? If you're an ER physician or high-income professional looking for straightforward, evidence-based financial guidance, we'd love to connect. Schedule a free intro call with Yahara Wealth Management — no pressure, no sales pitch, just a conversation.
This article is for educational purposes only and does not constitute personalized legal, tax, or financial advice. Please consult a qualified tax professional regarding your specific situation.