1. Introduction: What is Form 14039-B?

IRS Form 14039-B, officially titled the Business Identity Theft Affidavit, is an administrative fraud declaration document published by the Internal Revenue Service (IRS). The IRS operates as a federal bureau under the United States Department of the Treasury, administering the internal revenue code and protecting corporate tax account security.

While individuals use Form 14039 to report personal identity theft, business entities use Form 14039-B. The form is handled by specialized forensic accountants within the IRS Business Identity Theft Unit.

Form 14039-B is the official vehicle for corporations, partnerships, limited liability companies (LLCs), non-profits, and trusts to report that their business identity or Employer Identification Number (EIN) has been stolen or compromised. Filing this affidavit alerts federal tax authorities that a criminal may be filing fraudulent corporate returns, claiming fictitious business credits, or issuing fake wage statements under the company’s name.

2. Purpose of the Form

Business identity theft is a sophisticated crime that creates severe financial, legal, and operational disruptions. Criminals steal active Employer Identification Numbers or create sham businesses using real corporate names to file fraudulent income tax returns (such as Form 1120, 1120-S, or 1065) and pocket massive refundable credits.

Thieves also use stolen EINs to report fictitious payroll information on Form 941 or issue fake Form W-2 statements to co-conspirators. In other cases, perpetrators submit unauthorized corporate address changes to intercept refunds or open commercial credit accounts under the business’s legal name.

Form 14039-B exists to solve these corporate tax crises. Submitting the affidavit places an immediate identity theft indicator on the business’s master tax account. It prompts the IRS to freeze fraudulent filings, reverse unauthorized business address changes, void sham payroll records, and clear the way for legitimate corporate returns to be processed.

3. Who Needs to File This Form

Form 14039-B is completed by authorized corporate officers, partners, fiduciaries, or legal representatives of an entity that has experienced identity theft. You need to file this form if your business encounters any of the following triggers:

Rejected Electronic Business Tax Returns: Your e-filed Form 1120, 1120-S, 1065, or 941 was rejected because a return was already accepted under your EIN for that tax period.
Unexpected IRS Balance Due or Delinquency Notices: The business received an IRS notice (such as Notice CP59, CP259, or CP14) regarding unfiled returns or unpaid tax liabilities for periods the business was not active or did not owe.
Unauthorized Address or Officer Changes: You received Notice CP148 (Confirmation of Address Change) or other IRS notices reflecting an address, responsible party, or officer change that management never authorized.
Discrepancies in Employee Wage Filings: The IRS notified your company of discrepancies between Form W-3 transmittals and individual employee filings, indicating that fake W-2s were issued under your EIN.
Unsolicited EIN Assignments: You received Notice CP575 assigning an Employer Identification Number that no authorized company officer ever applied for.
Proactive Protection After a Breach: Your corporate data, banking credentials, or executive information were compromised in a commercial data breach, and you want to place a proactive security alert on your tax account.

4. Who Is Exempt / Not Required to File

Because Form 14039-B is strictly an institutional fraud report for business entities, many individuals and situations do not require it:

Individual Taxpayers: Individuals reporting personal identity theft involving their Social Security Number must file Form 14039, not Form 14039-B.
Routine Audit Disagreements: If the IRS is auditing deductions or adjusting income on a return your business actually filed, you must use standard examination appeal channels like Form 12203 or Form 14017.
Internal Corporate Embezzlement: Form 14039-B is not for reporting internal embezzlement, employee theft, or commercial partner disputes. Internal financial crimes must be reported to local law enforcement and civil courts.
Commercial Credit Card Disputes: Fraud involving private vendor accounts or bank credit cards that does not impact federal tax filings should be directed to your commercial lenders and credit bureaus.

5. When to File

Form 14039-B is an event-driven form that should be submitted immediately upon discovering evidence of tax-related identity theft:

File Promptly Upon Discovery: Submit the affidavit as soon as you identify a rejected e-filed return, an unauthorized address change, or an unexpected IRS delinquency notice.
Filing with a Paper Return: If your annual corporate return was rejected due to a duplicate filing under your EIN, print your complete, signed paper tax return, attach Form 14039-B and corporate authority proof to the front, and mail the package immediately.
Notice Response Deadlines: If you received an IRS inquiry notice, submit Form 14039-B within the timeframe printed on that notice (typically 30 to 60 days) to prevent automated collection enforcement.

Filing quickly minimizes tax account damage, prevents incorrect tax liens from attaching to business assets, and helps law enforcement track down the perpetrators.

6. Where and How to File

Form 14039-B cannot be submitted through consumer tax preparation software. It must be delivered through specialized administrative channels directly to the IRS Business Identity Theft Unit.

How you submit Form 14039-B depends on the circumstances of the fraud:

Attached to a Paper Return: If your electronic return was rejected, attach Form 14039-B, a copy of the submitter’s photo ID, and corporate authority documents directly to the front of your signed paper return. Mail the packet to the specific IRS address as per instructions for your business entity type and state.
In Response to an IRS Notice: If you received an IRS letter or notice regarding unauthorized activity, mail or fax the completed affidavit and exhibits directly to the address or dedicated fax number printed on that notice.
Standalone or Proactive Filing: If you are filing the affidavit without a tax return or notice, fax the form and attachments to the dedicated IRS Business Identity Theft fax line at 855-807-5720, or mail materials to the centralized IRS processing address as instructed on the form.

7. Step-by-Step Instructions to Fill the Form

Form 14039-B is a multi-section document designed to verify the business’s identity, the submitter’s legal authority, and the nature of the tax fraud. Review the table below for a section-by-section guide.

Section	Required Information	Instructions for Business Officials
Section A	Reason for Filing	Check Box 1 for actual tax-related identity theft (rejected return, notice received) or Box 2 for potential/proactive identity theft.
Section B	Business Information	Enter the exact legal business name, Trade/DBA name, Employer Identification Number (EIN), physical address, phone, and entity type.
Section C	Submitter Profile	Enter the name, corporate title (e.g., President, Partner, Member, Trustee), SSN, phone number, and mailing address of the individual submitting the form.
Section D	Explanation of Issues	List the specific tax years/periods affected, check all compromised tax forms (e.g., 1120, 1065, 941, W-2), and detail notice numbers received.
Section D	Narrative Details	Provide a clear chronological description of the fraud: how it was discovered, unauthorized address changes, and known fraudulent filings.
Section E	Verification Documentation	Attach a clear copy of the submitter’s photo ID and legal proof of authority to represent the business (e.g., corporate resolution, Form 2848).
Section F	Declaration & Signature	Sign and date under penalties of perjury, certifying that the submitter holds legal corporate authority to act on behalf of the business.

Understanding Section E: Establishing Authority to Act

The IRS protects business tax records strictly under Section 6103 of the Internal Revenue Code. The IRS Business Identity Theft Unit will not process Form 14039-B unless the individual submitting the form proves they have legal authority to access the company’s records:

Corporate Officers: Provide a copy of the corporate resolution, corporate meeting minutes, or Articles of Incorporation listing you as an active officer (President, CEO, CFO, or Treasurer).
Partnerships & LLCs: Provide a copy of the operating agreement, partnership agreement, or state registration listing you as a general partner or managing member.
Estates & Trusts: Attach a copy of the letters testamentary, court appointment, or trust instrument establishing you as the executor or trustee.
Authorized Tax Professionals: If a CPA, Enrolled Agent, or attorney submits the form, attach a signed Form 2848 (Power of Attorney) specifically authorizing representation for the affected business tax forms and tax years.

8. Required Documents/Information Needed Before Filling

To avoid rejection or prolonged processing delays, assemble the following corporate and legal records before completing Form 14039-B:

Submitter Photo Identification: A clear, legible photocopy of your valid driver’s license, passport, state identification card, or military ID.
Proof of Corporate Authority: Articles of Incorporation, operating agreements, corporate resolutions, or Form 2848 confirming you can legally act for the entity.
IRS Notices and Rejection Sheets: Copies of any CP notices, unfiled return inquiries, or electronic filing rejection notices received from the IRS.
Complete Paper Business Tax Return (if applicable): A signed, legitimate paper corporate tax return (e.g., Form 1120 or 1065) with all schedules, if filing alongside the affidavit.
Police or Regulatory Reports (Optional): A copy of your local police incident report, state Secretary of State corporate fraud report, or FTC complaint.

9. Common Mistakes to Avoid

Submitting an incomplete business fraud affidavit can cause the IRS to reject the filing and leave the business’s tax accounts vulnerable. Avoid these frequent mistakes:

Omitting Proof of Corporate Authority: Failing to attach corporate documents proving you are an officer or partner is the number one cause of Form 14039-B rejections.
Omitting the Submitter’s Photo ID: Forgetting to include a photocopy of the signing officer’s government photo ID will halt processing immediately.
Using Form 14039 Instead of Form 14039-B: Using the individual identity theft affidavit for an entity results in processing delays. Always use Form 14039-B for corporations, LLCs, and partnerships.
Failing to Paper-File the Legitimate Return: If an electronic return was rejected due to duplicate filing, submitting Form 14039-B alone does not satisfy your tax filing requirement. You must attach your legitimate paper return to the affidavit.
Neglecting State Tax Authorities: Criminals who steal an EIN to file fake federal returns often file fraudulent state corporate returns as well. Failing to alert your state department of revenue leaves your state accounts exposed.

10. Penalties for Non-Filing or Errors

Form 14039-B is a victim protection affidavit, so there are no civil tax penalties for choosing not to submit it. However, the commercial and financial fallout of failing to address business identity theft is severe:

Automated Tax Assessments: If criminals file fraudulent payroll or corporate returns under your EIN, the IRS computer system will eventually assess unpaid taxes, penalties, and interest against your business.
Federal Tax Liens on Business Assets: Unresolved fraudulent assessments can lead to public Notices of Federal Tax Lien filed against your company, freezing bank accounts, damaging business credit scores, and terminating vendor lines of credit.
Delayed Legitimate Refunds: Legitimate business refunds or employee retention credits will be held indefinitely until the identity theft is investigated and cleared.
Perjury and False Reporting Liabilities: Form 14039-B is executed under penalties of perjury. Falsely claiming that your company’s legitimate tax return was filed by an identity thief to evade taxes or escape liability is a federal crime under 18 U.S.C. Section 1001, carrying substantial fines and corporate criminal exposure.

11. Related Forms or Schedules

Form 14039-B operates alongside several key business filing schedules, disclosure forms, and IRS publications:

Form 14039: Identity Theft Affidavit (for individual taxpayers)
Form 1120: U.S. Corporation Income Tax Return
Form 1120-S: U.S. Income Tax Return for an S Corporation
Form 1065: U.S. Return of Partnership Income
Form 941: Employer’s Quarterly Federal Tax Return
Form 2848: Power of Attorney and Declaration of Representative
Form 8822-B: Change of Address or Responsible Party – Business
Publication 5199: Taxpayer Guide to Identity Theft
Publication 5424: Business Identity Theft (Brochure)

12. Frequently Asked Questions

How do criminals commit business identity theft?

Thieves use publicly available corporate records from state Secretaries of State to obtain a company’s legal name and EIN. They then file fraudulent corporate returns claiming bogus tax refunds, submit fake quarterly Forms 941, or create unauthorized credit accounts in the company’s name.

What should I do if my business’s electronic tax return is rejected?

If your e-filed corporate or partnership return is rejected because a return was already filed under your EIN, you must print your complete paper tax return, attach a completed Form 14039-B with photo ID and authority documents to the front, and mail the entire package to the IRS.

Does the IRS issue Identity Protection PINs (IP PINs) for businesses?

No. While the IRS provides 6-digit IP PINs to individual taxpayers, it does not currently issue IP PINs to business entities. Instead, the IRS Business Identity Theft Unit places specialized security indicators on your business tax account to flag unauthorized filings and manual review procedures.

How long does the IRS take to resolve business identity theft?

Business identity theft investigations are complex and involve forensic reviews of multiple tax forms, bank accounts, and payroll records. Resolution typically takes between 150 to 180 days, and highly complicated corporate cases may take longer. You can monitor progress through your assigned IRS caseworker.

Should our company notify commercial credit bureaus about business identity theft?

Yes. If your EIN was compromised, notify major commercial credit agencies (such as Dun & Bradstreet, Experian Business, and Equifax Commercial) to place a fraud alert on your company’s credit profile and review your credit reports for unauthorized business loans or accounts.

Can a local police report be attached to Form 14039-B?

Yes. While a police report is not mandatory, attaching a copy of a report filed with local police or state commercial fraud divisions provides helpful third-party documentation that strengthens your case with IRS investigators.

13. Conclusion: Key Takeaways Summarized

IRS Form 14039-B is the primary legal tool to protect your enterprise from the devastating effects of corporate tax fraud. Keep these essential practices in mind:

Business-Specific Fraud Affidavit: Use Form 14039-B to report identity theft involving an Employer Identification Number (EIN) for corporations, LLCs, partnerships, or trusts.
Attach Proof of Authority: Always provide corporate resolutions, operating agreements, or Articles of Incorporation proving the submitter has legal authority to act for the business.
Include Submitter Photo ID: Every Form 14039-B must include a clear, legible photocopy of the authorized signing officer’s government photo ID.
Mail with Paper Return if E-File Rejection Occurs: If your e-filed return was rejected due to a duplicate filing, mail your complete paper business return with Form 14039-B attached to the front.
Submit via Approved Channels: Deliver the affidavit to the specific IRS address as per instructions on your notice, or use the dedicated identity theft fax line at 855-807-5720.

IRS Form 14039-B Guide: Business Identity Theft Affidavit