Taxpayer's dependent SS# used on another return - help with the process please

[BulldogTom]

Long time client of mine, 2 daughters in college, I remember when they were first going to grammar school.   I e-filed the return and got a reject for one of the SS# used on another return.   I call the client thinking one of the kids filed for themselves for a part time job.   Nope.  Neither one filed a tax return this year.   

Crap.   ID theft....

Can someone walk me through how to walk my client through the process?   I seem to remember there is an ID theft checklist from the IRS and a couple forms to fill out and send in with the paper filed return.  

I have not had to do this before, only heard about it in update classes.   This is a really good client and I need to help them get through this.

Tom
Longview, TX

[Lee B]

https://www.identitytheft.gov/#/Steps

https://www.irs.gov/newsroom/taxpayer-guide-to-identity-theft

https://www.irs.gov/individuals/how-irs-id-theft-victim-assistance-works

You can give them the checklist and answer questions but they are going to do a lot of the work.

 

[Lee B]

You could send a PM to Terry D EA.  I believe he had had his own identity stolen several years ago.

[mcb39]

Start with Form 14039.  I have had two; the same client two years in a row.  I believe that it took about ten months before he got his refund.

[Catherine]

Yup; those links and Form 14039.

[BrewOne]

one change I've noticed in IRS procedure--they no longer issue an IP PIN when taxpayers submit Form 14039 (or at least with two of my clients who filed the form).

So they will have to still apply--

https://www.irs.gov/identity-theft-fraud-scams/get-an-identity-protection-pin

 

[mcb39]

I still have the same clients getting a pin year after year.  Not that they had identity theft; but their workplaces were compromised. The pin is different every year.  I have finally taught most of them to watch for it.

[BulldogTom]

Thank you all.   Appreciate you.  My clients think I am a hero...

We are paper filing with the 14039 attached.   Proof of dependency is also being attached to paper return (Birth Certs, Passports, College enrollment docs).

It required a phone call to AXT support to find out which SS# was compromised.   

Taxpayers are taking steps to freeze credit, call banks, etc.   

Tom
Longview, TX

[jklcpa]

Be sure to advise about the IP PIN requirements. These are some small things compared to the i.d. theft, but clients should know before getting an IP PIN:

• The IP PIN is permanent and can't ever be cancelled, and it will be required to e-file each year forever.
• A new IP PIN IS issued each year at the beginning of filing season.
• If taxpayers move during the year, they must file form 8822 for IRS to send the subsequent years' PINs to the correct address, or filing will be delayed until the new PIN is retrieved. This is easier now with clients being able to set up IRS account access, but who knows what security measures and hurdles will be in place in future.

[BulldogTom]

Follow up, my clients informed me that there was a known data breach at the college.   No proof that was how the child SS# was obtained by the perp, but it seems reasonable to suggest that is what may have happened.

Tom
Longview, TX

[mcb39]

When there is a breach, they  will tag everyone involved with a tax pin forevermore, whether their identity was stolen or not.