SSN already filed

[kathyc2]

I've never had these, other than the wrong parent trying to claim child until last year. One last year and already one this year.

It's been quite a while ago, maybe 15 years, but we used to have to include prior year AGI as part of e-filing process. It seems to me that if the IRS would bring back that requirement, the vast majority of these fraudulently filed returns would be eliminated.

Does anyone know why they removed the PY AGI requirement?

[David1980]

Prior year PIN/AGI is part of self-select PIN method while practitioner PIN method doesn't require it. In theory anyone using practitioner PIN method has undergone a background check to obtain their EFIN, but in practice it's far too simple to pay some 20 year old a little cash to have them apply for an EFIN or to just use someone else's EFIN without permission.

Even today if you were to do a tax return on Turbotax or another DIY software you'd still need the prior year PIN/AGI. If the IRS just discontinued practitioner PIN method that probably would cut down on identity theft a lot. Not just the prior year AGI thing, but also validation of taxpayer date of birth as well. I've often wondered why they don't just validate date of birth for every return. Seems more like the direction the IRS is going is the IP PINs though. I wouldn't be surprised if in a few years the IRS expanded that program to cover everyone.

[kathyc2]

Thanks. I was not aware that the PY AGI was still a requirement on Turbo tax type returns.

So the fraudster that filed on my clients SSN also knew their AGI?

Do they need PY pin and agi, or PY pin OR agi?

[Possi]

another one bites the dust

I have a bad feeling about this. I had the same thing happen on an ACK today. She had Anthem. All they need is Name, DOB and SS# to file a return.
This could cripple our profession if it goes viral. We will all be flipping from efile to paper, printing, mailing, etc.

I had this happen before, a few years ago, and I think when I filed the paper return, I had to write "FRAUD VICTIM" across the top and highlight it.

The PIN is only for efiling following years.

WHY OH WHY does the IRS pay first and ask questions later??? What in the heck is wrong with them?? I'm glad the budget cuts are hitting them. It will cause them to stop the bleeding!! Throwing more money at them is never the answer. They will potentially blow $21 BILLION this year. Wait to pay refunds until the W2s have been filed and matched up with the tax returns!!!

[David1980]

WHY OH WHY does the IRS pay first and ask questions later??? What in the heck is wrong with them?? I'm glad the budget cuts are hitting them. It will cause them to stop the bleeding!! Throwing more money at them is never the answer. They will potentially blow $21 BILLION this year. Wait to pay refunds until the W2s have been filed and matched up with the tax returns!!!

Actually the budget cuts will have the opposite effect. Paying out refunds doesn't come from the IRS budget. On the other hand, enforcement of tax law is discretionary spending in their budget. So cut IRS budget and the very first thing that gets cut is enforcement. Rather than auditing questionable refundable tax credit claims it's cheaper for the IRS to just not audit the claims. IRS budget cuts are a fraudsters dream come true.

[Possi]

Prove it, then pay it

What is wrong with holding refunds until all W2s and 1099s are filed to prove withholding? That seems like a pretty good solution to me! Of course, it would hurt all the preparers out there who charge an arm and a leg for fast refunds.

[David1980]

What is wrong with holding refunds until all W2s and 1099s are filed to prove withholding? That seems like a pretty good solution to me! Of course, it would hurt all the preparers out there who charge an arm and a leg for fast refunds.

Yeah I agree. I'm not sure the IRS has the authority to do it, and they definitely don't have the resources to implement it, but congress could fix both of those problems. I can't imagine with the technology we have today that matching W-2's up at the time of filing is undoable.

[kathyc2]

So, this reminded me that I hadn't run my credit report for awhile. When I did one of the identity questions was which one of these addresses are you associated with, and the answer was the addy of one of my business clients. All I can figure out is it came from a POA on file w/ IRS. Do they really have the authority to share that info w/ TransUnion?

[TAX4US]

Along these lines of waiting what effect would that have on a filing season which is short now due to some 1099's with withholding on them aren't due until later. Just thinking.