client thinks niece's identity stolen

[schirallicpa]

It's kind of a mess up family.  My client has taken in her nieces because her sister has some mental issues.  When she went to collect her info this Fed, she could not find the youngest girls SS card, and had to go thru the trouble of getting another one for her.  Finally she got it Thursday and brought it in so we could get her return e-filed.  On Friday the efile rejected because that SS # had been used on someone else's return.  My client thinks she knows who (another relative) and thinks he had stolen the SS card to begin with and that's why she could not find it in February.  So now the question is, how do we pursue this?

[Lynn EA USTCP in Louisiana]

File an ID theft notification for the niece, form 14139 I think. 

I think you will also need to paper file this return, with the pertinent disclosure form 8948 and a copy of the efile rejection notice

 

[Terry D EA]

Yes, that is the correct form to use. Also, you will have no choice but to paper file the return. There are other steps that need to be taken as well. Such as file a police report, contact the credit bureaus;etc. Unfortunately, I have done this too many times and have to do it again for a client now. I wish these crooks would stop

Edited March 25, 2017 by Terry D
To additional comment

[schirallicpa]

a few years ago i had a situation where a mom would always claim a child, when the child lived with the dad.  Then we would just attach a signed statement, state who's return the child was on, and that's it.  it would fly and the dad would get his rightful refund.  but that was in the low-tech days.

 

[taxxcpa]

Years ago I had a client whose ex-husband always filed first and claimed the kid--to which she was entitled to claim.  So her efiling bounced.  I had to re-submit it without claiming the kid, then after she got her first refund, I would file an amended return claiming the kid.  And she always got the second refund

[MDEA]

i would just paper file return with proof that the child lived with the aunt. I would not file identity theft if it is just a dependent being taken. I have this happen several times a year. It can take several months for refund. The other way is take child off e-file and amend.

[SaraEA]

Terry D, this year we have had zero ID theft cases.  Last year we had four (one who had an IP PIN).  Year before that, TWELVE.  Years before that, one or maybe two, usually deceased.  Season certainly is not over yet, but so far so good.  I think all the new filters and data points being transmitted with the returns are helping immensely.  When I saw how the number of returns accepted by IRS was down over 20% in the first weeks of filing season, I immediately thought that the thieves (who file as soon as possible to get in before the real taxpayer) had been thwarted big time.