Fraudulent tax return

[Albort]

This smells like a scam. Please call a number NOT on the letter you received.

Also sign up for creditkarma, it's free and will alert you of any changes/credit score pulls/account changes on your credit.

this. I looked around online that said that you wont find out someone filed under your name until you file and it gets rejected immediately.
I have Athem Blue Cross so this worries me and i looked online. i wont find out until then.

 

[perditax]

Having thought about it overnight, I wonder if they are targeting people who file paper on the assumption that they might be less technically savvy and less likely to do some research (and use credit protection services like Creditkarma). No offense at all to OP, but if it's a scam it's interesting that they knew they filed paper.

 

[leebee]

I would be VERY suspect that the letter is a fraud. Never ever have I heard of a return being flagged for being e-filed, EVER. Look up your states department of revenue on line and call them. NOT from the number listed on the letter.
We've had a few clients that had their ID's stolen and fraudulent returns filed using it. After a lengthy back and forth proving they were the right person, they were then assigned a PIN number from the IRS that was needed in order to e-file in future years. Filing a paper return doesn't guarantee it gets filed and cleared. It just means you skip the rejected e-file process.

Do this IMMEDIATELY Friday morning. Start at 8am local time (or whenever you find out they open). Be VERY suspicious of what's in the letter. Did the person you talk to ask you for your SS# or any other personal information (to "confirm" you're actually you)?

Be very, very careful. My friend just got a scam IRS letter with all of their information including their SS and telling them to call the number. He looked up the official IRS number and it was a scam. They were freaked b/c this letter had all of their information. I would call the number listed on the IRS website and confirm. These letters are a known scam, hopefully that is not the case here, but I would really look into this.

This smells like a scam. Please call a number NOT on the letter you received.

Thanks, everyone, for your concern and suggestions. The letter does not ask for ANY information about us, and it doesn't contain any information except our names and address. It also outlines immediate steps for us to take: Contact the IRS and gives the web link; contact local law enforcement to file a criminal complaint; obtain additional information via the state attorney general's website about contacting credit bureaus, banks, and other creditors. It asks that when we file our taxes, we do so via a hard copy/paper return. It also lists the phone number I called yesterday, which is the same number on the State website for the same division. When I called the number, the electronic answering service gave me a menu from which to choose. I punched in the number and told the person who answered that I had received a letter about possibly being the victim of identity theft. He said "I'll connect you to the office that handles that." The man I finally talked to never asked for anything more than my name, and then he asked "and DH's name is your spouse?" That was it for actual information exchange- he didn't ask for me to confirm anything else (address, birthdate, SS#,etc.). He answered some specific questions from me (but I gave him NO information about us at all). He also was pretty clear that this return was pulled because it's the first time our SS#s have ever submitted an electronic return; he says that's something the fraud division looks for as an indicator of possible identity theft.

I don't think this letter is a scam, but regardless, I'll keep the fraud alert active through the credit agencies and I'll also monitor the credit cards closely. I am going to talk with our banker today (she was out of town yesterday) to see what she recommends about the accounts. I'd rather be safe than sorry, even if it is a hassle.

 

[sam_gordon]

Thanks, everyone, for your concern and suggestions. The letter does not ask for ANY information about us, and it doesn't contain any information except our names and address. It also outlines immediate steps for us to take: Contact the IRS and gives the web link; contact local law enforcement to file a criminal complaint; obtain additional information via the state attorney general's website about contacting credit bureaus, banks, and other creditors. It asks that when we file our taxes, we do so via a hard copy/paper return. It also lists the phone number I called yesterday, which is the same number on the State website for the same division. When I called the number, the electronic answering service gave me a menu from which to choose. I punched in the number and told the person who answered that I had received a letter about possibly being the victim of identity theft. He said "I'll connect you to the office that handles that." The man I finally talked to never asked for anything more than my name, and then he asked "and DH's name is your spouse?" That was it for actual information exchange- he didn't ask for me to confirm anything else (address, birthdate, SS#,etc.). He answered some specific questions from me (but I gave him NO information about us at all). He also was pretty clear that this return was pulled because it's the first time our SS#s have ever submitted an electronic return; he says that's something the fraud division looks for as an indicator of possible identity theft.

I don't think this letter is a scam, but regardless, I'll keep the fraud alert active through the credit agencies and I'll also monitor the credit cards closely. I am going to talk with our banker today (she was out of town yesterday) to see what she recommends about the accounts. I'd rather be safe than sorry, even if it is a hassle.

Thank you for the update. With the added information, it sounds like the letter is legitimate. Good luck!

 

[leebee]

Thank you for the update. With the added information, it sounds like the letter is legitimate. Good luck!

I am happy that the good folks on the DIS took the time to read and comment. I tend to be naive about some things, and honestly, it never crossed my mind that this could have been a scam! I guess it's why I posted; nothing like this has happened to us before, it's an area in which I am not knowledgable, and I know there are "tax guys" here on the DIS. It's always helpful to get input and perspective beyond that which my DH offers, and the two friends I talked to also had no experience with anything like this. I appreciate everyone's opinions and comments- THANKS!!

 

[bcla]

I am happy that the good folks on the DIS took the time to read and comment. I tend to be naive about some things, and honestly, it never crossed my mind that this could have been a scam! I guess it's why I posted; nothing like this has happened to us before, it's an area in which I am not knowledgable, and I know there are "tax guys" here on the DIS. It's always helpful to get input and perspective beyond that which my DH offers, and the two friends I talked to also had no experience with anything like this. I appreciate everyone's opinions and comments- THANKS!!

I've never gotten a message from our state tax agency, but have gotten several from the IRS. One was actually where they stated that I was entitled to a special tax credit. I heard of it but didn't think I was eligible. The notice came with a check for the amount they calculated would have been my additional refund.

Another time it was a notice about unreported stock transactions. We'd actually lost money on it, and my wife (with a general accounting background no less) didn't think we needed to note that on our taxes. Well, the IRS considers the sale price only in these notices, and the basis isn't reported to the IRS. So it's up to the taxpayer to calculate gains or losses, but absent that the IRS literally assumes that one got the stock for free when calculating estimated tax liability. We got that by mail.

Tax agencies never make an initial contact by phone or email about any kind of discrepancy. It's always by mail, and usually in an official mailing (there are specific criminal penalties for illegal use). These notices should also have accurate information about you, so it wouldn't look like someone fishing for SSNs. In my experience it should be pretty easy to tell that it's real. I'm guessing that there was also a case number, so it could be referenced rather than sensitive info.

 

[Geoff_M]

Another time it was a notice about unreported stock transactions. We'd actually lost money on it, and my wife (with a general accounting background no less) didn't think we needed to note that on our taxes. Well, the IRS considers the sale price only in these notices, and the basis isn't reported to the IRS. So it's up to the taxpayer to calculate gains or losses, but absent that the IRS literally assumes that one got the stock for free when calculating estimated tax liability. We got that by mail.

Been there, done that! I've never hyperventilated so hard in my life then when I opened that letter and the IRS claimed we owned them over $10K from an unreported sale of mutual fund shares. Like you, we actually lost money on the sale, which was in order to roll over pre-tax retirement funds into a new mutual fund in the hope of a better return. Since we didn't receive any proceeds and it was immediately "rolled over", I didn't include it in our return. I didn't calm down until after I'd talked to our financial adviser that triggered the sale/purchase and he assured me we didn't really owe any money.

 

[bcla]

Been there, done that! I've never hyperventilated so hard in my life then when I opened that letter and the IRS claimed we owned them over $10K from an unreported sale of mutual fund shares. Like you, we actually lost money on the sale, which was in order to roll over pre-tax retirement funds into a new mutual fund in the hope of a better return. Since we didn't receive any proceeds and it was immediately "rolled over", I didn't include it in our return. I didn't calm down until after I'd talked to our financial adviser that triggered the sale/purchase and he assured me we didn't really owe any money.

I'd made a sale once before from an employee stock purchase plan. I got the stock discounted - 15% off the lower price at the beginning or end of a quarter. I moved onto another company, but it was still sitting in a Smith Barney account. I kept on waiting for the stock to do something. It was worth less than I paid for it for a while. After some time I decided to sell it just because it was worrying me. I think the sale price was right about my purchase price and I turned a loss if you included the transaction fee. I didn't file it on my taxes and the IRS didn't come after me for whatever reason.

However, I did hear about some guy who stayed in the US on a legal visa after going to school here. He decided to become a day trader. He didn't make money, but had a lot of buy/sell transactions with small differences. He gave up and went back to his home country. Then he got a bill from the IRS that assumed something like 3 million dollars, since he had bought and sold so many times, and their basic assumption is that all shares were given away unless you indicate how much was paid.

 

[tvguy]

You only need a smartphone to scan documents. But nobody really has those nowadays.....

Not at the IRS, they are forbidden in work areas at the processing centers, probably for this very reason.

 

[NewRVLady]

OP- the letter sounds suspicious
State workers are not that efficient- the filing date is not reached yet
Be careful

 

[RitaZ.]

this. I looked around online that said that you wont find out someone filed under your name until you file and it gets rejected immediately.
I have Athem Blue Cross so this worries me and i looked online. i wont find out until then.

That's not accurate. Two years ago, we received a letter from the IRS (addressed to my minor son) notifying us that they couldn't process "his income tax return" until he provided additional information. I contacted the IRS immediately thinking the letter was some kind of fraud in itself. I didn't use the phone number on the letter because I'm a skeptic by nature. Turns out that someone had indeed filed a fraudulent tax return with DS's identity.

It took many hours of phone calls to the FTC, our local PD, many calls to the IRS, etc., to straighten out the mess. The IRS caught the fraud and didn't process the return. The IRS knew the address used in the fraudulent return, but, of course, wouldn't tell me where it originated from.

Since this happened, DS is issued a new ID# every year that he has to use, along with his SS#, when filing his income tax return. More than likely, the letter the OP received is legit.

Something has to be done to address this problem of identity theft and fraudulent tax returns.