ID Theft new Procedure

[Kram BergGold]

I have had two cases of ID theft thwarted by IRS. When your client gets a 5071C letter you can paper file the return by fax or mail to the address below, I asssume you include a copy of the letter. If as in my case, the client calls the IRS and is told the letter was sent out but the client did not receive it, tehn the client puts a note on the return that there is a letter but they never got it.

The fax number is 855-277-5038

If the return were mailed it would go to:

Internal Revenue Service

3651 SIH-35 Stop 6572

Austin TX 78741

[manyhappyreturns]

5071C letter

I've had 2 clients receive 5071C letters. Both of them previously mailed returns with Form 14039, Identity Theft Affidavit, because their returns were rejected due to someone using their names and SSNs to efile returns. The letter asks them to do just the thing that the IRS and other agencies or companies are always telling everybody not to do, which is call or go to a website to verify their identity. My clients didn't know whether or not these letters were a scam, and I really wasn't sure either, because I'd never seen them before. They look very much like IRS letters, but they wouldn't be too difficult to mimic. People who have already had an ID theft issue are especially spooked when something like this comes along, and that is perfectly understandable.

The 2nd client who received one of these letters came into my office today. The letter was addressed to a man she had never heard of AND herself, and it was sent to her address. She is married, but not to the man who the IRS apparently thinks she is. It has his SSN on the letter, so here is the IRS sending someone's name and SSN to a stranger! So I called the number on the letter and I told the agent what happened and she said, "Oh, that's probably just a computer error," like no big deal, but it IS a big deal. IRS computers shouldn't be matching people up with the wrong spouse and sending them other people's SSNs. A lot of things have happened this tax season to give me reason to lose confidence in the IRS, and this is just one more thing.

[mastertaxguy]

Does irs encourage id theft

A taxpayer raised an interesting point regaring ID theft and IRS. He always has FED and STATE balance due, and IRS and each STATE wants paper checks to have TP's social security number. Paper checks are electronically processed and all that, but often are viewable on line.

BTW, he declined to have direct debit because he doesn't want IRS to know about his bank accounts--not knowing they probably already have it.

[veritas]

The IRS

A taxpayer raised an interesting point regaring ID theft and IRS. He always has FED and STATE balance due, and IRS and each STATE wants paper checks to have TP's social security number. Paper checks are electronically processed and all that, but often are viewable on line.

BTW, he declined to have direct debit because he doesn't want IRS to know about his bank accounts--not knowing they probably already have it.

Knows a lot about us.

I decided to try retrieving my transcript online from IRS.gov to see how it works. After entering dob, social security number and my address it came back with a series of questions. One was whether certain items pertaining to my credit record applied to me. They knew I had a loan with a certain creditor, when it was paid off and the amount of payment

[manyhappyreturns]

The IRS and states want us to write our SSNs on our checks because when they arrive, the voucher goes one way and the check goes the other. Seems like they could keep them together long enough to record them and apply the amount to the proper account, then move on. Not sure what the point is of the voucher if it doesn't stay with the check.

So what's this about the checks being viewable online? Where?

[joanmcq]

No, it's in case the voucher gets separated from the check.

[FEDUKE404]

Likely just a thorough ID check

Knows a lot about us.

I decided to try retrieving my transcript online from IRS.gov to see how it works. After entering dob, social security number and my address it came back with a series of questions. One was whether certain items pertaining to my credit record applied to me. They knew I had a loan with a certain creditor, when it was paid off and the amount of payment

I'm not so sure "they" necessarily applies to the IRS.

Those types of questions are SOP for getting online credit checks (even the valid, free ones) to weed out imposters. Multiple-choice questions such as what vehicle did you last register with X County, or what was your last mortgage payment, are very common. IIRC, they can even pop up for folks working through a FAFSA application?

The IRS could be accessing/contracting the same data base for someone trying to get a transcript online.

As for the processing issues being discussed, I'm no longer allowed to mention the "ch**k" word on these boards. . .

FE

[mastertaxguy]

Is irs helping identity theft grow?

The IRS and states want us to write our SSNs on our checks because when they arrive, the voucher goes one way and the check goes the other. Seems like they could keep them together long enough to record them and apply the amount to the proper account, then move on. Not sure what the point is of the voucher if it doesn't stay with the check.

So what's this about the checks being viewable online? Where?

At least in my neck of the woods, banks with on line banking/on line statements also allow you to view cancelled/cleared checks. Thus if someone can crack in (like that never happens), they can see the checks and what was written on them. Like account numbers, SS# and so on.

While many of us are writing fewer checks and using debit cards and such, I write checks for Estimate payments, final balances due and so on (for myself only of course). When they clear, I 'open' up the check and save the pdf copy to a folder on my computer(s). Same with my statements. Yes, the checks I write to IRS have my SS# on them, but my credit is probably so bad and my checking balances so low no one really cares.

Some states (I think Ohio) only want the last four digits of the TP on the payment check.

Wonder why IRS doesn't block out the SS or EIN# numbers on checks or use something else (maybe a code printed on the vouchers: every software version getting a different prefix or something with a random number generated).

I don't know if anyone gets paper checks back from their bank(s), but I have seen older paper checks with SS# on them for payments of various things.

[MAJ]

Identity Theft - The IRS - And how bad it is..

I was to receive MY refund on 3/20/14. No show. Checked website on Saturday. It said return held, contact IRS. I did - Said they could NOT verify my income? WHAT!!??
I took return and W2's to IRS office 30 minutes away. Gave to agent. Now they say 4-6 weeks again. I received letter from IRS Saturday. I must go ti IDVERIFY.IRS.GOV
I did - challenge questions included who did I buy a house from in 1991 and 2000. Luckily I actually knew their name!!

I have a client with a PIN # due to identity theft past 2 years. PIN was entered and yet they still hold up her check. She is pissed. She said "Give me my paperwork - I will go to H&R Block!! WHAT!??
But she is right. She is broke and does not need this harrassmet. She's worked at the same job and same address for 15 years. So, mail her check to address on file ....
I tried to tell IRS where the fraud occurred. (she was in rehab in Florida - Return was e-filed in Florida. duh! Too simple. I bet this guy is getting refunds and selling the data!!

I just want my money!!