What a tax firm does next when a client needs Form 14039 after identity theft

This page is general information, not legal advice. The current Form 14039 PDF, the IRS identity theft guide for individuals, and identity theft information for tax professionals are the texts to read. This page does not invent IRS processing times, and it does not type a mailing address or fax number. Use the current form for how to submit.

A tax return rejected is a warning sign of identity theft. Other warning signs on the individual guide include a Form W-2 or Form 1099 from an employer the client did not work for, and IRS letters or notices when the IRS suspects identity theft on a return. (Identity theft guide for individuals)

For tax professionals, a client e-filed return that rejects because the IRS already received another return with that Social Security number is a common clue to data theft. Stay on this affidavit page for the client's tax account. If the firm itself lost data, the tax professionals page says to report it to your local stakeholder liaison immediately. (Identity theft information for tax professionals)

Most people do not need to file Form 14039. Do not file it if the client already sent it for this incident, if the IRS already sent a letter or notice, if the identity theft is not tax related, or if the client used or was told to use the Identity and Tax Return Verification Service. File only if the IRS tells the client to, if the client cannot use that verification service, or if the client wants to tell the IRS about possible tax related identity theft the IRS does not have on file. (Identity theft guide for individuals)

Sections A through E of Form 14039 must be completed. The client, or a person authorized in Section F, signs under penalty of perjury. Do not use this form if a Form 14039 has already been filed for this incident. Choose one method: online (the form lists online as the preferred method), mail, or fax, not all three. (Form 14039 PDF)

If the client checked that they know or suspect someone used their information to fraudulently file a federal tax return, or that they or a dependent was fraudulently or incorrectly claimed as a dependent, and they are unable to file electronically because the SSN or ITIN was misused, the form says to attach Form 14039 to the back of the paper tax return and submit it to the IRS location where the client normally files. Do not use the specialized Form 14039 address on the form to file an original tax return. (Form 14039 PDF)

Keep copies of the signed Form 14039, the reject acknowledgement, and every IRS letter. Do not invent how long the IRS will take. The individual guide states a 6 to 8 week figure only for paper returns mailed when a dependent has already been claimed, after which the IRS looks into that claim. That is not a Form 14039 processing time.

Then recommend an IP PIN for next season. Capture it on the IP PIN intake page, not here. An e-file authorization for the return you eventually transmit is still the Form 8879 workflow.

Federal law requires tax professionals to create, implement, and maintain an information security plan to protect client data, no matter the size of the firm. Publication 4557 is the overview of those obligations and a checklist for a security plan. (Identity theft information for tax professionals, Publication 4557)

Write the plan the firm will actually follow on the WISP for tax preparers page. Tools can draft the client script below. They do not prepare, file, or sign Form 14039 or the return. Your staff approve what goes out. Your CPA reviews and signs every return.

Paste this into the job, then send it only after a person has confirmed the reject or the letter.

One row per client and incident.

• The trigger is in the file before anyone drafts Form 14039.
• The client, not the firm, signs Form 14039 unless Section F applies.
• Only one submission method is used.
• Copies sit with the return file.
• IP PIN intake is a separate row on the IP PIN tracker, not a substitute for Form 14039.

Download the Form 14039 client script outline and identity theft case log. The tax season operator can draft the chase when a signed Form 14039 is still missing. Your staff approve what goes out. Your CPA reviews and signs every return.