Report the theft to the IRS when ready

If you believe your tax refund was stolen or claimed fraudulently, contact the IRS without delay. Call the IRS at 1-800-829-1040 during business hours (Monday through Friday, 7 a.m. to 7 p.m. your local time). Have your Social Security number, filing status, and the amount of the refund you expected ready when you call.

The IRS can place a fraud alert on your account and investigate whether someone filed a return using your name and Social Security number. They can also issue you a new refund once they confirm the fraudulent claim. The sooner you report it, the faster they can freeze your account against further fraud.

If you filed electronically and your refund was deposited to a bank account you did not recognize, tell the IRS the account number during this call. They will note it in their system.

Key Takeaways

  • Call the IRS at 1-800-829-1040 as soon as you discover your refund was stolen or claimed fraudulently, because they can freeze your account and investigate the claim.
  • File a police report with your local law enforcement agency and keep the report number, because the IRS may ask for it and it documents the crime for your records.
  • Place a fraud alert with the three major credit bureaus (Equifax, Experian, and TransUnion) to prevent the thief from opening accounts in your name.
  • Monitor your credit report for the next year and watch for any tax returns filed in your name that you did not file yourself.
  • If the IRS finds fraud, they will issue you a new refund, but this can take several weeks or months depending on how complex the investigation is.

File a police report with your local law enforcement

Contact your local police department or sheriff's office and file a report for identity theft or tax refund fraud. Provide them with the details: your name, Social Security number, the amount of the refund, and the date you discovered it was missing. Ask for a copy of the report or a report number.

The police may not investigate aggressively — tax refund theft is often low priority for local departments — but the report creates an official record. The IRS sometimes requests a copy of the police report as part of their investigation, and you will need it if you later dispute charges or accounts opened in your name.

Place a fraud alert with the credit bureaus

Contact Equifax, Experian, or TransUnion and request a fraud alert. A fraud alert tells lenders to verify your identity before opening new accounts in your name. You only need to contact one bureau; by law, that bureau must notify the other two.

You can place a fraud alert by phone or online. Equifax: 1-800-525-6285. Experian: 1-888-397-3742. TransUnion: 1-800-680-7289. The alert lasts one year and is free. If you believe your identity has been stolen in other ways beyond the tax refund, you can request an extended fraud alert that lasts seven years.

After you place the alert, the bureaus will send you a free copy of your credit report. Review it carefully for accounts you did not open.

Check your credit report for unauthorized accounts

Once you receive your credit report from the bureaus, read through it line by line. Look for credit cards, loans, or other accounts opened in your name that you did not create. If you find any, contact the creditor when ready and tell them the account is fraudulent.

You can also place a credit freeze with each bureau, which prevents anyone — including you — from opening new accounts without unfreezing first. A freeze is stronger than an alert but requires you to unfreeze temporarily if you want to explore for credit yourself. Freezes are free and last until you remove them.

Watch for future tax returns filed in your name

For the next year or longer, monitor your mail for tax documents you did not request. If you receive a W-2 from an employer you do not work for, or a 1099 from a business you do not own, the thief may be filing returns in your name again.

You can also create an account on IRS.gov and use the "Transcript" tool to view what returns have been filed under your Social Security number. If you see a return you did not file, contact the IRS when ready at 1-800-829-1040.

Understand the timeline for getting your refund back

Once the IRS confirms that a fraudulent return was filed, they will issue you a new refund. However, this process is not fast. The IRS must investigate the claim, contact the financial institution where the fraudulent refund was deposited, and attempt to recover the funds. This can take anywhere from several weeks to several months.

In some cases, the IRS can recover the stolen refund from the bank account where it was deposited. In others, the money is already spent and cannot be recovered. The IRS will issue you a replacement refund regardless, but you may not receive it until their investigation is complete.

You will receive a letter from the IRS explaining the outcome of their investigation. Keep this letter for your records.

Consider an Identity Theft Report with the FTC

The Federal Trade Commission (FTC) allows you to file an Identity Theft Report at IdentityTheft.gov. This is different from a police report and different from a fraud alert. An Identity Theft Report creates an official record that you can use to dispute fraudulent accounts and remove them from your credit report more quickly.

Filing an Identity Theft Report is free and can be done entirely online. You will answer questions about what happened, and the FTC will create a report you can read and print. You can then send this report to creditors and credit bureaus as proof that the accounts are fraudulent.

Frequently Asked Questions

How long does it take the IRS to investigate and send me a new refund?

There is no fixed timeline. Some cases resolve in a few weeks; others take several months. The IRS will send you a letter explaining their findings. You can call 1-800-829-1040 to check the status of your case, but be prepared to wait on hold.

What if the thief deposited my refund into a bank account and already withdrew the money?

The IRS will still issue you a replacement refund. They attempt to recover funds from the receiving bank, but if the money is gone, you receive a new refund from the IRS instead. You are not responsible for the loss.

Can I file my tax return while the IRS is investigating the fraudulent claim?

You should wait for the IRS to resolve the fraud investigation before filing your own return. Filing while they are investigating can complicate the process. Call 1-800-829-1040 and ask when it is safe to file.

Do I need to file a police report if I already called the IRS?

Filing a police report is not required, but it is strongly recommended. It creates an official record of the crime and may be needed if you later dispute fraudulent accounts or need documentation for other purposes.

Will my taxes be affected next year if my identity was stolen this year?

Not necessarily, but you should monitor your account carefully. Place a fraud alert or freeze now to prevent the thief from filing again next year. Watch for unexpected tax documents in the mail, and check your IRS transcript regularly.