Identity Theft on Tax Return Filed

[S T]

Have a client that was a victim of "identity theft tax return filed" Actually his office had approximately 70 Employees that were affected by this - and the perpetrator used the Employer's address.

Client is still waiting for their IRS refund, after filing the form 14039 and paper filing the tax return for 2014 (MFJ return).

Interesting though, IRS sent a letter in the client's name (husband/employee) to the Employer's address. It states as follows - It is Ltr 4675C

"Our records indicate the social security number you used on the income tax return shown above belongs to another person. To process your tax return, we assigned you an Internal Revenue Service Number which is ********, An IRSN is a temporary taxpayer identification number"

"What you should do now - Immediately stop using the SSN # in question - Use the temporary IRSN we assigned to you for federal income tax purposes only - You cannot claim credits (gives a list) - We will correct your account and allow any eligible credits claimed on your return once you resolve your issue with the Social Security Administration, or you obtain your ITIN, and you notify us."

Not having dealt with this before, Taxpayer and myself believe this letter was sent to the person that fraudently filed the return (given the employer's address listed ), however, taxpayer's refund has not been processed based on the 14039 Affidavit (joint)

This is a very confusing process -

Has anyone else seen this IRS letter and have suggestions on what is the next step!

Thanks

Sandy

[TAXNJ]

Interesting

Have a client that was a victim of "identity theft tax return filed" Actually his office had approximately 70 Employees that were affected by this - and the perpetrator used the Employer's address.

Client is still waiting for their IRS refund, after filing the form 14039 and paper filing the tax return for 2014 (MFJ return).

Interesting though, IRS sent a letter in the client's name (husband/employee) to the Employer's address. It states as follows - It is Ltr 4675C

"Our records indicate the social security number you used on the income tax return shown above belongs to another person. To process your tax return, we assigned you an Internal Revenue Service Number which is ********, An IRSN is a temporary taxpayer identification number"

"What you should do now - Immediately stop using the SSN # in question - Use the temporary IRSN we assigned to you for federal income tax purposes only - You cannot claim credits (gives a list) - We will correct your account and allow any eligible credits claimed on your return once you resolve your issue with the Social Security Administration, or you obtain your ITIN, and you notify us."

Not having dealt with this before, Taxpayer and myself believe this letter was sent to the person that fraudently filed the return (given the employer's address listed ), however, taxpayer's refund has not been processed based on the 14039 Affidavit (joint)



Has anyone else seen this IRS letter and have suggestions on what is the next step!

Thanks

Sandy

Very involved and annoying process. This is a very confusing process - it takes longer to try to resolve than some complex tax returns preparation.

Suggest (maybe you have)
1 - contact IRS fraud division - document everything discussed and agent name and number

2 - IRS web-site has a specific area that will assist you related to this growing trend

These thiefs are very slick as mentioned in past posts. It seems to be a business for them and a nasty one.

Good luck

[S T]

Update on Identity Fraud Tax Return

Taxpayer finally after almost 6 months received their Federal Refund Check - State was not affected - Paper filed Federal with Form 14039 ----

So it appears that my prior post with the IRS notice was directed at the "person that fraudently filed the tax return" Of course that person never received this notice - so seems like a "waste of time and effort" on the IRS follow up - WHY?

For my taxpayers after a lot of effort and 6 months delay of reufnd for 2014 are finally HAPPY!

I just do not know what is store for us in filing the 2015 Tax Returns - so another saga/segment!

Sandy

[David1980]

I still think it makes more sense to owe the IRS than get a refund. I though that even before the identity theft stuff got big though. Aiming for a small amount owed pretty much makes one immune to delayed refunds and such. Who cares if it takes the IRS longer to process your return when your return is a balance due.

Of course, if you coach your clients to owe money they don't seem to have the same motivation to get their return filed early and that can cause a problem with so many last minute people.

[taxea]

I wouldn't coach my clients to owe money. I suggest to them that they alter their W-4 so that the yearly refund is around 200.

[tpnl]

For next year, expect . . .

Your clients should be receiving a PIN number to put on their 2015 return sometime in December or January. Without this number anyone who tries to file using their SSN, it should be rejected. So that is the good news.

Good luck. I have several over the past few years, and some are more time consuming than others. So far, all cases have eventually worked out for me.

[JohnH]

I wouldn't coach my clients to owe money. I suggest to them that they alter their W-4 so that the yearly refund is around 200.

Not me.
I tell them any balance due between $1 and $999 is a slam-dunk win.
After all, they don't routinely prepay their phone bill or utilities.