SSN Theft

[BP.]

Client called to say her son's TT self prepared e-file was rejected due to SSN already being used and a refund issued. She asked if I could provide any direction.

I gave them the IRS Identity Theft hotline number. She called me back just a short time later and said IRS told her son no return was filed yet under his SSN and that the problem was within TT and affecting people in FL using TT.

I had not heard about this; you?

[David1980]

There was some big fraud bust in Florida.

http://dailycaller.com/2012/03/26/tax-return-fraud-explodes-in-tampa/

I know in the past, I've had issues with returns where the IRS had the return and would tell you such if you called the e-help phone number, but if you called the 1040 number it didn't show up in their system. I don't know if that's still true.

So one possibility might be a return was filed for the SSN, but the IRS caught it on the front end and sent it to some special fraud processing unit instead of issuing the refund? But that because it was submitted, it's blocking retransmitted returns with the same SSN?

Answer is probably just to file on paper, and maybe filing a 14039 just in case?

[BP.]

Answer is probably just to file on paper, and maybe filing a 14039 just in case?

Thanks! Exactly the advice I gave them.

BTW, the story in your link gives more support for the idea that a big refund is really a big no-no. Waiting for a few bucks isn't so bad compared to waiting for thousands.