Dependent ID Theft?

[Justataxguy]

Recently filed 2013, '14 & '15 returns for client. 2013 was MFJ, couple split in 14 so wife claimed the 2 kids, and client filed as single. 14 & 15 were accepted, but 13 was rejected due to "dependent 2 had already been claimed on another return". Wife did not work in 13 and says she didn't file that year. I am filling out a 14039 form for the minor child, and am assuming that the child's info goes in section C, with the parent info on the back in section F, correct?

[taxmom34]

how old are the 2 kids? if old enough maybe kid filed and claimed themselves? you know they do that all the time!

[TAXNJ]

Irs

Recently filed 2013, '14 & '15 returns for client. 2013 was MFJ, couple split in 14 so wife claimed the 2 kids, and client filed as single. 14 & 15 were accepted, but 13 was rejected due to "dependent 2 had already been claimed on another return". Wife did not work in 13 and says she didn't file that year. I am filling out a 14039 form for the minor child, and am assuming that the child's info goes in section C, with the parent info on the back in section F, correct?

There is an identity Theft section on the IRS website that will address your question. It is a good resource

[spanel]

Recently filed 2013, '14 & '15 returns for client. 2013 was MFJ, couple split in 14 so wife claimed the 2 kids, and client filed as single. 14 & 15 were accepted, but 13 was rejected due to "dependent 2 had already been claimed on another return". Wife did not work in 13 and says she didn't file that year. I am filling out a 14039 form for the minor child, and am assuming that the child's info goes in section C, with the parent info on the back in section F, correct?

Wrong, this is not ID theft, this is simply the children were claimed by another unknown or known party.

All you need to do is... Paper file the tax return. The irs will send letters to both parties who claimed said children. Whoever cant prove those children lived with them, will owe money back to the IRS.

Chris

[spanel]

how old are the 2 kids? if old enough maybe kid filed and claimed themselves? you know they do that all the time!

The reject would have said they have been used as a primary/secondary on another return, not a dependent.

Chris

[FEDUKE404]

Form 14039 may be unnecessary

Are you certain there was a true "identity theft" or merely someone else used the SSN of the dependent?

(There is a difference!)

I would suggest you let the parent file the Form 14039 if it is necessary. Also, read the information below question #3 in Section A.

If these old returns were efiled, it may be simpler to file a paper return and let the IRS sort things out.

FE

[TAXNJ]

Unknown

Wrong, this is not ID theft, this is simply the children were claimed by another unknown or known party.

All you need to do is... Paper file the tax return. The irs will send letters to both parties who claimed said children. Whoever cant prove those children lived with them, will owe money back to the IRS.

Chris

If an unknown party uses the social security # of someone think that is ID theft, no?

If yes, follow IRS guidelines as your basis to resolve.

[Rapid Robert]

Knowing the unknown

If an unknown party uses the social security # of someone think that is ID theft, no?

If yes, follow IRS guidelines as your basis to resolve.

If this had happened back in 2010, most everyone would have assumed it was one of the parents (or some other relative) who filed, claimed the kid, and now has forgotten or doesn't want to admit to it. If an ID thief is going to use a valid name/SSN/DOB combo, they are probably going to file as a taxpayer, not just claim the person as a dependent. You can get a much larger refund as a primary taxpayer, than you can by claiming a dependent, so why waste the opportunity?

Also, would ID theft just be one year? Why wouldn't they go back to the well several years in a row, since no real returns were being filed?

I agree with spanel and FEDUKE404, the pattern fits more closely with plain old erroneous claiming of dependent by a known person, not ID theft.

[TAXNJ]

If this had happened back in 2010, most everyone would have assumed it was one of the parents (or some other relative) who filed, claimed the kid, and now has forgotten or doesn't want to admit to it. If an ID thief is going to use a valid name/SSN/DOB combo, they are probably going to file as a taxpayer, not just claim the person as a dependent. You can get a much larger refund as a primary taxpayer, than you can by claiming a dependent, so why waste the opportunity?

Also, would ID theft just be one year? Why wouldn't they go back to the well several years in a row, since no real returns were being filed?

I agree with spanel and FEDUKE404, the pattern fits more closely with plain old erroneous claiming of dependent by a known person, not ID theft.

My reply was only to poster Spanel's factual comment of "unknown party".

You post states you "assumed". That's where we differ. I rather work on facts than assumptions. Assumptions could lead to bloviating.

[Rapid Robert]

I rather work on facts than assumptions.

What facts tell you that this is a case of ID theft?