Someone used my SSN and tried to apply for a credit card and to open a bank account, the bank called me and I locked my credit, do I need to report it to IRS?

[miclase2016]

Is it mandatory? Do I have an obligation to do report this to the IRS? They are asking for my phone number and the best time to call me and I don't really want to do all that thing with the IRS unless it is mandatory. My credit with the bureaus is already locked.

[Opus 17]

It is not mandatory.  However, it may be beneficial to you in the long run.

If you report the identity theft, the IRS will assign a 6 digit IP-pin (identity protection pin) that you must use to file your tax return.  This is in addition to the 5 digit e-file pin.  Your IP pin changes every year and is mailed to you at tax season.  You can't e-file without it, and if you paper file and don't write your IP pin on the paper form, the IRS will delay your refund to verify your identity.

If someone files a return in your name and SSN, and then you also file, you can be looking at a 6-9 month delay to get your refund.  If you are self-employed, this can screw up your SE tax and your social security records.  And if you usually claim EIC and someone files a false claim in your name, you can be barred from getting EIC yourself without filing extra forms and going through additional verification each year.

[Opus 17]

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@Opus 17 wrote:

It is not mandatory.  However, it may be beneficial to you in the long run.

If you report the identity theft, the IRS will assign a 6 digit IP-pin (identity protection pin) that you must use to file your tax return.  This is in addition to the 5 digit e-file pin.  Your IP pin changes every year and is mailed to you at tax season.  You can't e-file without it, and if you paper file and don't write your IP pin on the paper form, the IRS will delay your refund to verify your identity.

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What I should have added here is that, without the IP PIN, no one else can file a return in your name even if they have your SSN.    If 2 returns are filed in your name, the IRS will probably eventually figure out who the real you is and pay the refund, but the IP PIN is a strong way to prevent anyone from filing a false return in your name.  

The downside is you need the IP PIN every year from now on.  There is a web site to retrieve it if you lose the letter from the IRS in December.

[miclase2016]

Thank you!