Identity Theft- IRS Identity Protection PIN

[Taxman VA]

Does anybody have any knowledge of how this works?

It came up just yesterday as Efiled for a married couple and it was rejected b/c of SSN showing up already on a previously filed return. Unfortunately, they will probably have to go paper and mail it. Although it may still cause an issue b/c a return has already been filed with their SSN.

What do you recommend?

I just want to be prepared if this happens again. I was unaware of this feature as I did know their identity had been compromised.

Thanks,

Taxman VA

[AZ-Tax]

Call your Software Co. tech support

These people should know

[oceanlovin'ea]

If a taxpayer's identity has been stolen last year, the IRS sent out a letter with a PIN. They were supposed to use this PIN when the return is filed this year. That way IRS knows that this is the right person and will process the return.

If they lose the PIN or don't use it, the refund will be held up while their identity is confirmed.

I had a couple last year who had their identity stolen the year before. They lost the letter with the number and they had to wait for their refund to come. This year they sent me the number.
Another client this year had her identity stolen last year. In moving, she didn't get the letter from the IRS. We filed her return and she has still not gotten her refund. I spoke with PPS yesterday and was told that she needs to make sure IRS has her correct address so they can contact her if they need to. She will mail out the change of address form today. But she may have to wait for her refund for a while....don't know how long.

Linda, EA

[FEDUKE404]

Use the IRS PIN if available

Does anybody have any knowledge of how this works?

It came up just yesterday as Efiled for a married couple and it was rejected b/c of SSN showing up already on a previously filed return. Unfortunately, they will probably have to go paper and mail it. Although it may still cause an issue b/c a return has already been filed with their SSN.

What do you recommend?

I just want to be prepared if this happens again. I was unaware of this feature as I did know their identity had been compromised.

Thanks,

Taxman VA

You (they) are now likely stuck with filing a paper return. Sounds as if their imitators have already beaten them to the IRS.

As for the IRS Identity Protection PIN, most software should have a place for you to enter that at the time you prepare the original tax return.

And the client who moved, WITHOUT telling the IRS of the new mailing address, has no one to blame other than himself. Mail from the IRS is never forwarded, and the IRS considers they have met their obligation when mailing something to the address they already have on file.

FE

[taxea]

I am interested in know which agency/ies and departments to report this to? The IRS fraud unit and FTC? Anyone know?

[David1980]

Well, assuming you already have an identity protection PIN, sounds like the identity theft has already been reported (or they wouldn't have that PIN). For taxpayers victim of identity theft that don't have a PIN at minimum 14039 seems like a good idea.

[Koss]

Identity Theft

taxea wrote:

I am interested in know which agency/ies and departments to report this to? The IRS fraud unit and FTC? Anyone know?

The IRS has an identity theft office:

http://www.irs.gov/newsroom/article/0,,id=251501,00.html

BMK

[Possi]

Special form

You will need to fill out the IRS Identity Theft Affidavit, Form 14039. Please be sure to write legibly and follow the instructions on the back of the form.

That is from the IRS website.

I have had 3 victims so far. Three last year and One this year. The one was a repeat from last year.

NONE of them were provided a special PIN number. Call to the IRS said that they did NOT issue those PINs to everybody.

I filled out the form 14039 and included a copy of the taxpayer's ID card. I might have included a copy of the SS card as well.

It was really bad when it happened again this year. IRS should have taken care of that.

[FEDUKE404]

Would not bother

I am interested in know which agency/ies and departments to report this to? The IRS fraud unit and FTC? Anyone know?

I had a client whose dependent son had his SSN "used" by unknown person(s) for six years running. The efiled parental returns would bounce, and paper returns became the expected norm.

Client went to local IRS office each year. No one seemed to care. The problem continued.

Client eventually contacted congressman, who had a problem resolution officer (I forget the title) in central NC to look into the problem. His "solution" was worthless, and we later found out his access to IRS records was very limited.

Client filled out/submitted the claim form for the IRS fraud/etc office. In CA? After several follow-up letters, and calls, he *NEVER* heard from them.

In 2010 I, once again, "tried" to efile and it worked. To this day *NO ONE* from the IRS has ever contacted the client regarding this matter. The problem simply went away. The 2011 tax returns are unfiled, awaiting investment information.

For my 2¢ worth, after this I would not waste any of my own time "reporting" anything. (Also I just don't do things that way. ) It seems to be an absolute waste of time.

FE