Identity theft is a major problem and I am sure it is ruining Christmas for lots of people. If you have been a victim of identity theft and have not contacted the IRS you need to to that ASAP. Besides using your SSN and other IDs to rack up debt, identity thieves will also file fake tax returns with you info. To start the IRS's process, you will need to submit to them a Form 14039 with copies of the police report and your IDs (SS card, driver's license, passport. That will alert the IRS to a potential fraudulent return. They may also send you ( and should send you if you have previously reported identity theft to them) a CP01a notice. This notice has a special 6 digit IP PIN number the victim will use when they file their 2010 tax return. This IP PIN is suppose to minimize processing delays by identifying the real taxpayer's return from a fraudulent one. If you get this notice, do not lose it. A lost CP01a and IP PIN can not replaced. A new IP Pin will be issued each year until the issue is resolved.
The IRS has a special unit, the Identity Specialized Unit dealing with identity theft issues. They can be contacted toll-free at 800-908-4490.