The Federal Trade Commission and IRS have provided a method for taxpayers to file Form 14039 electronically at IdentityTheft.gov, per an FTC news release. But at the same time the IRS posted a fact sheet (FS-2018-6) that outlines when taxpayers need to file the Form 14039. The IRS fact sheet notes that most taxpayers who are victims of tax-related identity theft don’t need to file it since the IRS today most often makes the taxpayer aware of the theft.

The IRS fact sheet notes that generally the Form 14039 is needed in the following cases:

The Form 14039 affidavit should be filed if the taxpayer attempts to file an electronic tax return and the IRS rejects it because a return bearing the taxpayer's Social Security number already has been filed. Or, it should be filed if the IRS instructs the taxpayer to do so.

The IRS explains why most tax-related identity theft victims don’t need to file the form:

In most cases of tax-related identity theft, the IRS identifies a suspicious tax return based on hundreds of processing filters and pulls the suspicious return for review. The IRS will send a letter to the taxpayer and will not process the tax return until hearing back from the taxpayer.

In this situation, the taxpayer will receive Letter 5071C, which will ask them to use an online tool to verify their identity and tell the IRS if they filed the return in question. A variation, Letter 4883C, will ask the taxpayer to call the IRS to verify their identity and tell the IRS if they filed the return. For those who have been a victim of a data breach, they may receive Letter 5747C and be asked to verify their identity in person at a Taxpayer Assistance Center.

Taxpayers file the Form 14039 to inform the Internal Revenue Service that they think they may be a victim of tax-related identity theft. They are having specific tax-related issues, such as not being able to file electronically because a tax return with their SSN already has been filed. (First make sure there are no other common issues, such as a transposed SSN or a dependent filing a separate tax return.)

The fact sheet goes on to explain the process of filing the Form 14039:

Completing Form 14039, attaching it to a paper tax return and mailing it to the IRS is the way to inform the IRS that the taxpayer may be a victim. The IRS will then identify the fraudulent return and, after an investigation, clear the account and process the paper tax return. See IRS Identity Theft Victim Assistance: How It Works.

Generally, most tax-related identity theft comes to light one of two ways:

The IRS mails a Letter 5071C, Letter 4883C, Letter 5747C or
The taxpayer tells the IRS (Form 14039)

A fillable Form 14039 is available on IRS.gov. It can be completed online, printed and attached to a paper tax return for mailing to the IRS. Or, taxpayers may complete the form online at the Federal Trade Commission and FTC will electronically transfer the Form 14039 – but not the tax return – to the IRS.

Finally, the IRS notes that some taxpayers who are not victims may file the Form 14039 to attempt to proactively obtain an IP PIN—but the agency warns those looking to do this that the process is not a simple one to complete:

Some taxpayers who are not victims of tax-related identity theft may use the Form 14039 to obtain an IP PIN by checking Box 2 on the form, indicating no tax administration impact. They will receive a letter inviting them to use the “Get an IP PIN” tool to obtain an IP PIN.

However, these taxpayers should be aware that they must pass a rigorous identity-proofing process called Secure Access. This identity-proofing process is intentionally difficult in order to keep cybercriminals, who have stolen personal data, from accessing the tool.

The grudging acknowledgement of the ability to file Form 14039 for someone who has not had a tax impact yet but believes he/she is at risk for such is interesting. Thought the fact sheet offers no explanation for the discouraging tone, it seems likely the IRS has been overrun with such application following major data breeches such as the Equifax loss of data on most U.S. consumers.

The FTC release and a related blog post [1] on the FTC website describe the electronic submission program at IdentityTheft.gov.

The FTC release notes that the IdentityTheft.gov has a broader purpose than merely dealing with tax related identity theft.

Identitytheft.gov allows consumers to report identity theft and to receive a personal recovery plan. Consumers can also obtain an Identity Theft Report that can be used in place of a police report to help clear their credit reports of fraudulent information, and customized letters they can send to creditors, debt collectors, and others to help recover from identity theft causes.

The blog post describes the process of filing the Form 14039 online via the site as follows:

Here’s how it works: IdentityTheft.gov will first ask you questions to collect the information the IRS needs, then use your information to populate the Form 14039 and let you review it. Once you’re satisfied, you can submit the Form 14039 to the IRS through IdentityTheft.gov and download a copy for yourself. About 30 days later, the IRS will send you a letter confirming it received the information.

Due to the site’s broader purpose, the blog post notes that individuals will obtain the following benefits by going to IdentityTheft.gov rather than merely submitting a paper Form 14039.

What are the benefits? IdentityTheft.gov will:

Walk you through the process of completing the Form 14039
Transfer your Form 14039 to the IRS securely
Guide you through placing fraud alerts on your credit files, checking your credit reports, and taking other steps to stop the tax identity theft from harming your accounts, and
Help you resolve any other problems the tax identity theft may have caused.

The FTC blog describes the process as follows:

[1] Seena Gressin, “Report tax identity theft with IdentityTheft.gov,” https://www.ftc.gov/news-events/blogs/business-blog/2018/04/report-tax-identity-theft-identitytheftgov, April 4, 2018