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Id theft: It is up, or is it down, or is it all around?

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    Id theft: It is up, or is it down, or is it all around?

    1. Our suburban Detroit Michigan office experienced a noticeable drop in ID theft issues (based on rejected e-filed returns)this filing season until 10 days ago.
    2. Yes, we had several from prior years with IRS issued ID theft pin numbers, but only 2 "new issues" through March 31. These were taxpayers with Wages/Income/AGI less than $40,000.00.
    3. Since March 31, however, we have had about a dozen "id theft rejects." All were prior clients. All were rejected because the primary taxpayer soc. sec. number was used on a prior field/accepted return.
    4. Curiously, of the dozen or so of these ID theft rejects, all have had AGI over $175,000.00. (However, not all of our higher income clients have had ID Theft at least on returns we did). None of the "rejected clients" stated they had requested an IRS transcript in the last year, nor had they sought mortgages or other loans where an IRS transcript was requested.
    5. So we wondered, (knowing that all of us have many more things to do) if others are experiencing a similar trend?
    6. Thanks to all who read this far and those who have the time to respond.
    Friends double; family triple. Don't buy an audit for yourself. If someone has to go to jail make sure it is the client. Remember it is only taxes, nothing important.

    #2
    Definitely down for me. Last year was running close to 2% of returns, and this year zero.

    I don't know if I got lucky, or if IRS has developed procedures to catch more fraudulent returns.

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      #3
      Last year I had 4. This year 1 so far, but out of the 4 I had last year, two filed 2015 extensions and I won't know until they are transmitted. One processed for 2015 with no issues. One rejected again due to SSN used. Odd thing is on the one that rejected, they had a PIN! Found out when we talked with IRS, they had stopped the original return -- maybe because PIN wasn't on it. Still had to paper-file.

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        #4
        I only had one rejected this year for an SS# having been used. It was due to a dependent SS being already filed. This client is a regular. He came in late this year so my gut feeling is the non-custodial parent had claimed the child. I handed him the fed return to mail. State return was accepted no problem (as usual). I advised him to get in earlier next year.

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