The CP01E notifies you that the IRS detected employment-related identity theft involving your Social Security number. Someone used your SSN to obtain employment, and their employer reported wages to the IRS under your number. The good news: the IRS has identified the issue and is not holding you responsible for taxes on income you didn't earn.
What Happened
An individual used your Social Security number on their employment paperwork. Their employer filed W-2s and other wage reports using your SSN. The IRS received those reports and flagged them as potentially fraudulent because the employment pattern doesn't match your filing history.
This is different from tax return identity theft. Nobody filed a fraudulent tax return in your name. Instead, someone used your identity to get a job, and the wages from that job are showing up on your IRS record.
Impact on Your Taxes
The CP01E is primarily informational. The IRS has marked the fraudulent wages so they won't affect your tax account. However, you should monitor your IRS account and future tax returns for any discrepancies. If you receive a CP2000 notice showing unreported income that you didn't earn, reference the CP01E and the employment identity theft case.
Protect Yourself Going Forward
Request an Identity Protection PIN from the IRS to prevent future unauthorized use of your SSN for tax purposes. Place a fraud alert or credit freeze with the three major credit bureaus. Monitor your Social Security Administration earnings record at ssa.gov to ensure only your legitimate earnings are posted. File your tax returns early each year to beat anyone who might try to file fraudulently using your SSN.
If you've received a CP01E and have questions about its impact, call us at (813) 229-7100.