16
practice examMultiple Choice

Practice Exam

Question 16 • CMS 2026-2027 Economics and Personal Finance HONORS INITIAL CREDIT

Ella attempted to file her tax return and learned that someone had already filed a fraudulent return using her name. What first step should Ella initiate to correct the problems related to this identity theft?

Answer
A
Ella should contact the police to file a report about the identity theft incident.
B
Ella should contact the Federal Trade Commission to report the identity theft.
C
Ella should contact the Internal Revenue Service to file the appropriate claims.
D
Ella should contact the Social Security Administration to file a report.

Explanation

Because the fraudulent return was filed using Ella’s information, the problem directly involves her tax account. She should contact the Internal Revenue Service and follow its process for reporting tax-related identity theft, which may include submitting an Identity Theft Affidavit (Form 14039). The FTC and police can also be relevant to identity theft, but the IRS is the first agency to address a fraudulent tax return.

AI-written and checked against the verified answer.

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