Potential Identity Theft using SSN for fradulent Tax Return

[jetboater4life]

Finished my taxes off a few days ago and clicked the send button in Taxcut and I get back a message saying that the secondary SSN (my wifes) had already been used as a primary SSN for a tax return. Called up HR Block and they said I would have to file manually (all 40 pages of it) which I did. I called the IRS and they said they confirmed that someone had filed with my wife's SSN . They instructed me to fill out form F14039 (for identity theft), which I did. They said it take about 6-9 months to sort these cases out and that this type of crime is exploding right now. So now I have to wait another 9+ months to get my refund!

A couple of notes: my wife's information was potentially stolen from her former employer last fall. So it could be a legitimate identity theft case, or maybe someone just entered their number wrong and it happened to match hers.

Other than filing my return as early as possible I don't know that there is much a person can do in this situation. The IRS needs to come up with some way of catching this sort of thing. My thoughts are if someone has a large change in their W2 or income then they need to wait until after the April 15th deadline to get a refund and if someone else submits with the same SSN then they can get it straightened out before giving out refunds.

Anyone have any thoughts on how to prevent this and mitigate the damage?
I contacted my wife's former employer about this and will be contacting the FTC, Social Security department, Attorney Generals office and putting a 90 day fraud alert on her credit report. She is also enrolled in credit protection (free compliments of Target) to monitor for credit cards being opened.

Anyone that bought something at target last year can get a year of credit protection free by going to creditmonitoring.Target.com

 

[Geiger41]

There are ways to deter it from happening, and it appears you have taken the necessary steps, but nothing you can do can prevent it. Same as in everyday street crime, it can be deterred but not totally prevented. If someone wants to do something they will.

 

[Scottintexas]

see this story from the AP about IRS refunding 4 BILLION last year to fraudlent accounts.

http://nypost.com/2013/11/07/irs-sent-655-tax-refunds-to-a-single-address-in-lithuania/

 

[Cory]

You are like the 4th person I know that has had this happen to them this year.

 

[steined]

Revoke the income tax system and go to a flat tax or national sales tax. No SSN required on the latter, (hopefully) no refunds on the former. That sucks!

 

[HawkTX]

I have a buddy who works in a credit card division of a bank and I was shocked at the amount of fraud going on in his division. Thieves suck!!!

 

[2devine]

IRS COMPLAINT FORM AND GOOD NUMBERS TO HAVE.

We know identity theft is a frustrating process for victims. We take this issue very seriously and continue to expand on our robust screening process in order to stop fraudulent returns.

What is identity theft?

Identity theft occurs when someone uses your personal information such as your name, Social Security number (SSN) or other identifying information, without your permission, to commit fraud or other crimes.

How do you know if your tax records have been affected?

Usually, an identity thief uses a legitimate taxpayer’s identity to fraudulently file a tax return and claim a refund. Generally, the identity thief will use a stolen SSN to file a forged tax return and attempt to get a fraudulent refund early in the filing season.


You may be unaware that this has happened until you file your return later in the filing season and discover that two returns have been filed using the same SSN.


Be alert to possible identity theft if you receive an IRS notice or letter that states that:

•
More than one tax return for you was filed,
•
You have a balance due, refund offset or have had collection actions taken against you for a year you did not file a tax return, or
•
IRS records indicate you received wages from an employer unknown to you.
What to do if your tax records were affected by identity theft?

If you receive a notice from IRS, respond immediately. If you believe someone may have used your SSN fraudulently, please notify IRS immediately by responding to the name and number printed on the notice or letter. You will need to fill out the IRS Identity Theft Affidavit, Form 14039.


For victims of identity theft who have previously been in contact with the IRS and have not achieved a resolution, please contact the IRS Identity Protection Specialized Unit, toll-free, at 1-800-908-4490.

How can you protect your tax records?

If your tax records are not currently affected by identity theft, but you believe you may be at risk due to a lost/stolen purse or wallet, questionable credit card activity or credit report, etc., contact the IRS Identity Protection Specialized Unit at 1-800-908-4490.

How can you minimize the chance of becoming a victim?

•
Don’t carry your Social Security card or any document(s) with your SSN on it.
•
Don’t give a business your SSN just because they ask. Give it only when required.
•
Protect your financial information.
•
Check your credit report every 12 months.
•
Secure personal information in your home.
•
Protect your personal computers by using firewalls, anti-spam/virus software, update security patches, and change passwords for Internet accounts.
•
Don’t give personal information over the phone, through the mail or on the Internet unless you have initiated the contact or you are sure you know who you are dealing with.
ID Theft Tool Kit

Are you a victim of identity theft?


If you receive a notice from the IRS, please call the number on that notice. If not, contact the IRS at800-908-4490


Fill out the IRS Identity Theft Affidavit, Form 14039. (Please write legibly and follow the directions on the back of the form that relate to your specific circumstances.)


Credit Bureaus


Equifaxwww.equifax.com1-800-525-6285


Experianwww.experian.com1-888-397-3742


TransUnionwww.transunion.com1-800-680-7289


Other Resources


Visit the Federal Trade Commission's Identity Theft page or use the FTC's Complaint Assistant.


Visit the Internet Crime Complaint Center (IC3) to learn more about their internet crime prevention tips.


Report Suspicious Emails


Report suspicious online or emailed phishing scams to:phishing@irs.gov.


For phishing scams by phone, fax or mail, call:1-800-366-4484.


For More Information

•
IRS.gov/identitytheft
•
IRS.gov/phishing

 

[007]

You are like the 4th person I know that has had this happen to them this year.

You are the 4th person I know this happened too. All got the "its gonna take 6 months to sort out" story.

 

[billyb]

I had my identity stolen when I bought a new car from a dealership.

It was a horrid situation. LONG story short, I figured out on my own it was my car sales man who opened up a corporate credit card in my name and credit with him as the the co signer. Because it was a corporate card, no paperwork EVER showed up at my address. All stuff went to the pos apartment (the "companies" address).

So, I called the cops with all my proof in hand. 4 police precincts later I finally get a cop who will investigate. (Only after I said I was going to citizen arrest this pos and bring him in myself).

This pos was on probation so all they did was put him back in jail for two years.

Meanwhile, my credit sank to the 400's. Even though capital one immediately waived it as fraud, my credit still suffered for a few years. This is what they do not mention when you finally resolve something like this.

I tried to sure the dealership...but couldn't find a lawyer with any balls (go figure).

 

[Magic]

Someone in Jersey started using my sons SS# when he was 3. Took over 2 years to sort out. The good news is his credit improved by the time he was 10.... =)