Will Identity Theft Delay My Tax Refund?

Can Identity Theft Delay Your Tax Refund?

Yes, identity theft can add a significant delay to your tax refund. When the IRS flags a tax return for identity theft, they stop processing it. From there, they may reach out for identity verification and/or additional information from you—and wait for your response.

If you notify the IRS of suspected identity theft, they may investigate past tax returns for signs of identity theft, or look for additional victims associated with a fraudulent return, which can take time. Only when your identity is verified and the issues surrounding your return have been resolved will the IRS process your return and issue a refund.

How Long Will Your Tax Refund Be Delayed?

When you report identity theft to the IRS, they aim to resolve your issue within 120 days. However, reported wait times can be significantly longer. According to 2026 data from the National Taxpayer Advocate, the average wait time for resolving identity theft cases is around 20 months.

Depending on a variety of factors, your wait may be longer or shorter. Though you don't have a lot of control over processing time, you can take steps to keep the process moving.

• Respond promptly to IRS requests for information. A Treasury Inspector General for Tax Administration (TIGTA) study of 2024 and 2025 tax returns found that returns requiring authentication were posted within 13 days of verification, on average.
• Don't file the same forms multiple times or contact the IRS repeatedly to check on status. These extra actions tend to slow things down. The IRS will notify you when your case is resolved.

Tip: If you experience a delay in getting your refund due to identity theft and it causes you financial hardship (think eviction, utilities being disconnected or inability to pay for medical care), you can contact the Taxpayer Advocate Service to file an appeal.

How Does Tax Identity Theft Happen?

Tax identity theft can take different forms, but here's how it typically unfolds:

1. Scammers obtain personal identifying information. This can include your Social Security number through data breaches, phishing scams or stolen documents.
2. They use your information to file a fake tax return. They may fabricate information to increase deductions and credits, and maximize the refund amount.
3. The IRS freezes your return and investigates. The IRS may reject your attempt to e-file your return due to a duplicate filing, or IRS fraud detection systems may flag your return for inconsistencies. Alternatively, you may report the identity theft yourself. In any case, suspected identity theft pauses the processing of your tax return and delays your refund.

Signs You May Be a Victim of Tax Identity Theft

The most common signs of tax identity theft involve suspicious activity around your Social Security number or Social Security account. In some cases, IRS systems detect signs of tax fraud and flag your account. In other cases, you may come across common indicators of fraud yourself, including:

• Duplicate tax returns: You can't e-file your tax return because the IRS already received a return using your Social Security number (SSN) or individual taxpayer ID number (ITIN).
• Stray tax returns: The IRS notifies you that a return has been filed using your SSN or ITIN, but you didn't file it.
• Unfamiliar income: IRS records show income from an employer you don't know.
• Tax transcripts: You receive a tax transcript in the mail that you didn't request.
• Online account notices: You get an IRS notice saying an online account has been created in your name, or that your existing online account has been accessed or disabled without your knowledge.
• Unexplained tax bills: You receive a balance due notice, refund offset notice or have collection actions taken against you for a tax year when you didn't file a return or receive a refund.
• Social Security notices: The Social Security Administration (SSA) sends notice that your benefits are being reduced based on IRS records showing you received wages or other income from an employer you don't know.

What to Do if You Discover Tax Identity Theft

If you discover tax identity theft, report it to the IRS and file your taxes anyway. These three steps may help:

• Contact the IRS. You can reach them by phone at 800-908-4490 to open a case or get answers to any questions about identity theft you may have.
• Fill out IRS Form 14039, Identity Theft Affidavit. Form 14039 notifies the IRS of suspected identity theft that hasn't already been detected by the IRS. You may also want to file this form with the IRS if you've been a victim of identity theft that does not involve the IRS or your taxes.
• Verify your identity. If the IRS finds signs of identity theft, they may reach out to your first. If you receive IRS letter 5071C, follow the instructions to verify your identity. Be ready to answer questions about past returns as part of the verification process.

Report Tax Identity Theft to the FTC

You can file an identity theft complaint with the Federal Trade Commission (FTC) at IdentityTheft.gov. You may also want to file a report with your local police.

Secure Your Credit Report

You have a right to request a fraud alert on your credit report. A fraud alert instructs lenders to verify your identity before approving credit. All three major credit reporting agencies (Experian, TransUnion and Equifax) provide this option, and filing a fraud alert with any credit bureau will trigger them to notify the other two.

You also have a right to add a credit freeze to your account to limit access to your credit report while the freeze is in place. If you want more advanced identity theft monitoring, protection and fraud resolution assistance, consider an Experian premium membership.

Learn more: Fraud Alert vs. Credit Freeze: Key Differences Explained

Should You Still File Taxes if You're a Victim of Identity Theft?

File your taxes promptly, regardless of whether there's an issue with identity theft. Duplicate returns can trigger problems with the IRS e-file system, so be prepared to file a paper return if necessary.

If your return was rejected when you tried to e-file, you have 10 days to print it out and put it in the mail, even if this takes you beyond the federal tax filing deadline.

If you filed your taxes and received an IRS notice of possible identity theft, follow the instructions in your IRS letter. Contact the agency with the information they need to verify your identity and move forward with processing your return.

How to Protect Your Identity Going Forward

Clearly, the best way to deal with tax identity fraud is to avoid it in the first place. Study up on how to avoid tax identity theft. Four tips to consider:

• Limit access to your Social Security number. Only provide your SSN when it's absolutely essential and you trust the person requesting it—for example, a new employer may need it for tax reporting. Don't carry your Social Security card in your wallet. Shred documents that have your SSN and other personal identifying information, so they don't fall into the wrong hands.
• Beware of phishing scams. This could come in the form of people pretending to call from the IRS to discuss unpaid bills, problems with your account or, frankly, anything else. The IRS always makes initial contact via U.S. mail. If someone calls, texts, emails or reaches out by direct message on social media, don't engage. Contact the IRS directly if you think there's a legitimate issue.
• File your taxes early. The sooner you file, the less time criminals have to file a fake return before you—and the sooner you'll receive your refund.
• Activate extra security on your tax preparation app. Adding identifying factors like your phone number can help make logins more secure. If multifactor authentication is available, consider using it.
• Work with a trusted tax preparer. Check references and security protocols before you share information with a tax preparer.
• Get an IP PIN: All taxpayers have the option of getting an Identity Protection PIN (IP PIN) valid for one year from the IRS to help protect their tax identities. Doing so will provide you with an added layer of security when filing your taxes. You use an IP PIN when filling out your paper or electronic tax forms.

Learn more: Ways to Protect Yourself From Identity Theft

Remember that any criminal who has enough personal identifying information on you to file a fraudulent tax return also has enough information to open credit card accounts, file for unemployment or use your personal identifying information on a job.

In addition to checking your credit reports, placing fraud alerts and activating credit freezes at all three credit bureaus, you may want to consider using identity theft protection such as an Experian premium membership. You'll get monitoring of your credit file and Social Security number and alerts on any suspicious findings. You'll also be able to lock and unlock your credit file with an easy-to-use app and get access to identity theft insurance and fraud resolution assistance, so managing your identity is simpler.

The Bottom Line

If your identity has been stolen to file a fake tax return, your tax return will probably take longer than usual to process and your refund will likely be delayed. File your taxes as early as possible and respond promptly to any IRS communications for the best results.

The fastest and safest way to receive your tax refund is through IRS direct deposit to a bank account. The Experian Smart Money^™ Digital Checking Account & Debit Card can help you build credit without debt by linking to Experian Boost^®ø, which gives you credit for eligible bill payments after three months of payments. See terms at experian.com/legal.