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Question: what to do about irs claiming I owe taxes from a job I never worked at? (maybe Identity theft?)?

My father just got a letter in the mail from the irs today saying he owes money from his 2007 taxes. From a job he never had. They claim a bank paid him 6000 dollars in 2007. He had a full time job all year but he never worked at that bank. The IRS claims he owes 900 dollars in back taxes. HE never got a 1099 from the said bank as the IRS claims. What can he do? This sounds like identity theft to me, but how do we fix this? He never worked at this bank.
any help PLEASE!! THANK YOU!
austin. texas
Edit: To Heather thanks for the help.
No he never sold anything or ever had a account with this bank (velocity credit union)

Answer: first, you contact the bank…..

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