IRS has had two taxpayers matching one SSN

[OtisMozzetti]

Has anyone heard this, and can anyone explain it?

My client, a woman then age 76, e-filed her return early last March. It came back several times stating that a return had already been filed using her SSN. She had filed returns with me for the past 6 years, with no problems. At that time, our only solution was to submit her return on paper.

During the intervening 6+ months, we have sent many letters and made many phone calls and went personally to the IRS Building twice and took the case to the Case Resolution Room at the IRS Nationwide Forum. Only during October did she finally receive her modest tax refund (less than $600). In that instance, the latest IRS person we dealt with had referred the case to the Taxpayer Advocate since it wasn't getting resolved via normal IRS channels.

Little by little the story has leaked out to us, that IRS master files have been linking her one SSN to two different taxpayers. Apparently, the other taxpayer has experienced problems during three prior years. Can anyone offer any theory about this?

The other woman has a last name with completely different "name control" (first 4 characters of the last name)? Could this be that someone at Social Security, or someone at the IRS, with access to computer systems is repeatedly changing the "master file"? How can the IRS software systems ever allow this to happen?

[Gary2]

Have you contacted SSA at all?

One possibility is identity theft. Another possibility is that in rare cases, the SSA mistakenly issues the same SSN to two people.

[Koss]

Social Security Number Assignment

There are at least two possible explanations for what your client is experiencing. One possibility is identity theft. Sometimes this involves an illegal alien using someone else's SSN for work purposes, without even knowing the person's name. This type of "identity theft" is obviously very different from the more malicious cases where the criminal seeks to obtain credit, goods, or services using the victim's name, SSN, and other identifying information.

The other possibility is that the Social Security Administration has actually assigned one SSN to two different people. This is very, very, very rare. But it is possible. Due to the way social security numbers are assigned, this can happen, and it has happened.

Here's a news article about it from June, 2010:

http://www.aolnews.com/2010/06/26/two-women-share-birth-date-and-social-security-number/

If this is what has happened to your client, there is nothing the IRS can do to resolve the problem. The problem must be addressed by the Social Security Administration. They may actually give both taxpayers a new number.

The IRS merely compares the name and SSN to the records of the Social Security Administration. If this is indeed a rare case where two people have the same SSN, then the IRS is going to get a valid match on both names.

Your client needs to start talking to the SSA--not the IRS. Even in cases of confirmed identity theft, it is the SSA--not the IRS--that has the authority to issue a new SSN to the victim.

BMK

[dtlee]

Just to go a little farther on what Gary2 said, duplicate Social Security Numbers happen even without identity theft. Any large insurance company knows that this happens and has to build that in to any computer systems they develop (and so does Social Security and the IRS). There are checks to prevent assigining the same number to two people, but those checks do not always work. Also, sometimes checks to prevent someone from having two Social Security Numbers end up giving two people with similar names and backgrounds the same number.

In one instance I saw, I had a client who worked early in her life and then got married and became "spouse" for many years, without a job. During those 30+ years, she became invisible to Social Security (and actually to the IRS as well since it was before they really checked the spouse information on the return that closely) who at some point re-issued her number to someone else. Upon the death of her husband, she was forced to return to work and file a return on her own. Imagine her surprise when she got a similar notice.

The IRS and Social Security do have ways to tell these individuals apart in most cases, especially when their names are dissimilar. However, it can take them a while to confirm that there are truly two individuals involved.

[Koss]

Keyboard Race!

Looks like Gary2 and I were typing at the same time.

And Gary2 offered exactly the same thoughts that I had.

When I started, there were no responses. Gary2 started after me, but somehow he beat me to the post.

My posts are too long. LOLOL I took about five paragraphs to say what Gary2 managed to say in three sentences.



BMK

[oceanlovin'ea]

yes, it has happened

It happened last year to one of my clients. We electronically filed their return and it was rejected. Refiled and rejected again. Called PPS and was told the only thing to do is to mail in a paper return. It was referred to identity theft department.
It took months for them to get their refund. But they finally got it. Never heard exactly what happened. But I advised them to check all 3 credit bureaus and make sure that there was not any activity that they weren't aware of. Also make sure bank accounts and credit cards were all okay.
This year they got a letter from IRS with a specific PIN that they had to use to electronically file their return. They misplaced it! So had to mail returns again. But they have gotten their refund now.

Linda, EA

[Gary2]

My posts are too long. LOLOL I took about five paragraphs to say what Gary2 managed to say in three sentences.

I've been known to write long posts, too, while others beat me to the punch. Just not when I've been fasting all day and trying to unwind from a day of prayer.

[taxxcpa]

I had a reject for the same reason, probably due to identity theft.
in this case, there was no refund--the client owed about $200.
I suggested the widow who was filing as surviving spouse, mail the return with the payment.

Since it was recent, I don't know if there will be any further problems. If it was the deceased husband's SSN, it probably won't be a problem next year when she files as single.

[appelman]

If identity theft, most likely limited.

The New York Times had a long article on this about a year ago. There is a whole racket, concentrated in Florida, of harvesting SSN's and using them to e-file early and claim lots of credits. They even have "schools" where "experts" teach others how to do it. As one participant is quoted as saying, "It's a great racket; you don't even have to carry a gun!" It is unlikely that the same number will be reused for this purpose. It's safer for the bad guys to move on. This is one reason why there has been a slow-down in processing of refunds.

[ChEAr$]

credit reports

Speaking of which, we should make sure our clients know how to go about obtaining free copies, and not via those companies who want to sell you something, even the FICO score.

THE official web site is annualcreditreport.com. In using it, one chooses which of the big three reports he wants for free; absolutely free. Then he is directed to that company's site for a FREE report, downloadable and printable.

Since one is only entitle to a free report once every 12 months, I use it to obtain a free report, say Jan 1st, from Equifax. Then log on again and get a free one from Transuion ? about May 1st. Again September 1st for .. uh.. well, the other one.
That way I get a free one every four months.

Try it, you'll like it. And your clients will appreciate your telling them how to do it.