Layout:
Home > Tax Fraud

Tax Fraud

February 26th, 2022 at 05:00 pm

I got my state tax refund this morning. That prompted me to check on my federal return, since it usually comes first. To my great surprise, I learned that my refund was changed from $1937 to $537.  I thought I must have made an error, but when I checked the details page, it said the SSN of one or more individuals claimed as a qualifying dependent was missing or incomplete, that the last name of one of those individuals did not match their records, that one or more of those individuals exceeds the age limit, and that my adjusted gross income exceeds $75K.  (I wish!)  FRAUD, FRAUD, FRAUD! I did not claim any dependents at all, and my AGI is $5,377!

I cannot call to complain until 7am Monday morning.  I am beyond furious.  Any suggestions?

8 Responses to “Tax Fraud”

  1. MonkeyMama Says:
    1645895422

    Ugh! So sorry! I can look up what resources I have for tax fraud and send to you.

    While skimming through my latest tax manual, I noted that *all* taxpayers can register for a IP PIN, which is a 6-digit number assigned by the IRS that prevents others from filing fraudulent returns by using your SSN. This used to only be available to those who experienced theft. Got to www.irs.gov/identity-theft-fraud-scams/get-an-identity-protection-pin

    Just starting with that, for everyone else. Will be back...

  2. MonkeyMama Says:
    1645896686

    **Call IRS ID Protection Specialized Unit 1-800-908-4490 to have the IRS put an account marker on your SSN.

    **File Form 14039 IRS Identity Theft: https://www.irs.gov/pub/irs-pdf/f14039.pdf

    **Sign up for the IP PIN, as mentioned in my last comment

    I personally never had a client experience this and am not familiar with the process. I don't know how you get your tax return corrected or any logistics on that front.

    With the huge IRS backlog, you may find that you need to hire a professional to help you clear this up. Just went through this at my work where I work for a tax attorney who doesn't trust CPAs to touch our 20-ish tax returns. Finally relented this year for a few tax returns. But the timing ended up working well because we are having so many IRS backlog issues. Not that my employer has ever been cheap, but told him the other day "it's like 15 minutes of their time to call the Tax Practitioner IRS hotline" and to get things cleared up in one day. So is really the best value you can get from a tax professional. That said, last I worked in tax it took *one day* for the IRS to process a power of attorney so that we could talk on behalf of clients. These days it is taking 6 weeks to process these POAs. So this still might be "6+ weeks to start to resolve" even if you hire someone Monday.

    Not saying this is necessary, but keep in mind if you aren't getting anywhere with things. & you most definitely do not need a CPA. You just need a legit tax professional. An EA is probably more appropriate (and less expensive) for this situation.

  3. Dido Says:
    1645903372

    Sorry you've experienced this. Like MM, I have no direct experience. I agree, an EA (Enrolled Agent, meaning "enrolled to practice before the IRS") *experienced* in IRS representation is your best bet in this situation. EAs by definition are trained in IRS representation, but CPAs may not be. (And you can be an EA based on passing the test without having any actual experience in representation--that's yours truly). You can find a list of EAs who specialize in IRS representation here: https://taxexperts.naea.org/

  4. mumof2 Says:
    1645921832

    This is what worries me when it comes to our taxes, we have to send paper copy through the mail as we can't use online services overseas...we are currently arguing with them as our records don't match theirs...and this is 2020 taxes...so they are sending us what they have so frustrating for us as it costs heaps to call overseas on a cell phone, I always talk to a different person who says something different, last 2 times I called the first one said she would fix it and if we hadn't heard in a month then call them back..which I did and that guy told me they had closed it...I said hell no you owe us a couple thousand dollars..so now just waiting for the records to get here and it's been a month...if something like this happens to us..it is so hard to fight...and yes there are people here that can do it for US taxes, but they charge $400 and most of our returns aren't much over that...so no point...so I feel for you hopefully you can gets your sorted soon..ours has been a year so far...and still not done...hopefully they don't screw up 2021 taxes..

  5. Jane Says:
    1645986182

    CB, I also got the same message, that the IRS changed my returns and I now owe $729 rather than a refund of $671. This amount difference is $1400 ($1400-$729 = $671), the precise amount of the stimulus paperwork I received. Obviously, either the tax software calculated this incorrectly OR I entered it in the wrong place.

  6. CB in the City Says:
    1645994284

    I don't think it was a problem with FreeTaxUSA. I think this is related to the breach I experienced last year. I think someone has filed using my SSN.

    Thanks to all who offered help. Unfortunately, the IP PIN site is not working today, but I did fill out the Form 14039. I was going to fax it today but I think I will wait on that until tomorrow when I can talk to someone -- I hope I can, anyway!

    I believe there may be an EA volunteering at our senior center. Again, I have to wait until tomorrow to find out. We'll see what the day brings.

  7. Dido Says:
    1645996710

    CB, yes, if you find one of the AARP volunteer tax prep sites, they often have EAs volunteering as managers for the sites. (This is one of the things I plan to do once I retire.)

  8. LuckyRobin Says:
    1646022032

    I'm sorry. That really sucks.

Leave a Reply

(Note: If you were logged in, we could automatically fill in these fields for you.)
*
Will not be published.
   

* Please spell out the number 4.  [ Why? ]

vB Code: You can use these tags: [b] [i] [u] [url] [email]