How the IRS Handles Identity Theft
Tax-related identity theft occurs when someone uses your Social Security number to file a fraudulent tax return and claim a refund. The IRS has a dedicated unit — the Identity Theft Victim Assistance (IDTVA) unit — that handles these cases, and they communicate through the CP01 series of notices.
CP01: Case Resolved
CP01 means the IRS has verified your identity theft claim and placed a protective indicator on your account. This indicator flags your account so that future returns filed under your SSN receive extra scrutiny. The letter typically includes your Identity Protection PIN (IP PIN), a six-digit number you must include on future returns to verify that you, and not an identity thief, filed the return.
CP01A: IP PIN Issued
This letter delivers your annual IP PIN. The IRS issues a new PIN each year, usually in December or January. You must enter this PIN on your return when you file. If you file electronically, the e-file system will reject your return if the IP PIN is missing or incorrect. If you lose the PIN, you can retrieve it through your IRS Online Account.
CP01B and CP01C: Ongoing Case
CP01B requests additional information to process your identity theft claim. CP01C provides an update on your case. These letters mean your case is still open and the IRS is working through the resolution process. Identity theft cases can take months to resolve because the IRS must verify all returns filed under your SSN and remove any fraudulent entries.
CP01E: Employment Identity Theft
This letter notifies you that someone may be using your SSN for employment purposes. Unlike tax-filing identity theft, employment identity theft means someone is working under your number. Their wages are being reported to the IRS under your SSN, which can affect your tax account. This letter is informational and does not require an immediate tax-related response, but you should consider placing fraud alerts on your credit reports.
CP01H: Deceased SSN Lock
CP01H means the IRS has locked your SSN because their records show it belongs to a deceased individual. If you are alive and received this letter, you need to contact the Social Security Administration to correct their records and then provide the IRS with proof that your SSN is valid.
Identity theft cases with the IRS are frustrating and slow. But the CP01 series means the IRS knows about the problem and is working on it. Your job is to respond to every letter promptly and use your IP PIN religiously.