Letter 4281C tells you that your personal information may have been compromised through an IRS data loss, theft, or disclosure. The letter explains your rights under Internal Revenue Code section 7431, which covers civil damages for unauthorized inspection or disclosure of tax return information. It also lists resources and the steps the IRS is taking to protect your identity.
This letter doesn't mean you did anything wrong. It means your data may be exposed, and you should act to protect it.
What to Do
- Get an Identity Protection PIN (IP PIN). You use it on your future tax returns. The letter tells you how to get one: through the online Get an IP PIN tool, by filing an application, or through in-person authentication. Your spouse and dependents can get one too if they pass the identity proofing process.
- Place a fraud alert on your credit file. Contact one of the three credit reporting agencies: Equifax, Experian, or TransUnion. You only need to contact one. That agency notifies the other two.
- Check on your minor children. If the IRS told you it lost or disclosed a child's information (under 18), contact one of the credit reporting agencies to see whether a credit file exists for that child or whether the child's identity may have been misused.
Using a Representative
Your representative can contact the IRS about this. On Form 2848, line 3, the Description of Matter must say "IRS breach," "IRS data loss," or "IRS information loss." If it doesn't, the IRS can't discuss the matter with your representative.
Watch for Problems
Keep the letter with your tax records. Watch your financial accounts and credit reports for activity you don't recognize. If someone files a tax return using your information, that's a separate problem with its own process. Form 14039, Identity Theft Affidavit, is the IRS form for reporting it.
For questions about the letter, use the phone number printed on it.
If you received Letter 4281C and are now dealing with identity theft or a tax problem, call us at (813) 229-7100.