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Old 03-07-2016, 11:33 PM   #61
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Originally Posted by Al in Ohio View Post
Don't blame the IRS when the real fault lies with the identity thief. If you had a pot of gold in a private swiss bank vault and someone stole your passcode and emptied it out, would you blame the swiss bank or the thief?....
Sure the thief is to blame, but so is the IRS for leaving the keys in the car with the motor running.

The IRS could simply compare last years return with the current year return, a legit return will have many things in common (which a thief will not know).
Any return with sudden large changes (which a thief uses to get large refunds) could be flagged and refund withheld, and send a letter to ask for proof.

How can you not blame the IRS when they send thousands of refunds to the exact same address, seriously how many taxpayers can live in 1 apt ??

These are all simple checks that computer programs can do instantly.
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Old 03-08-2016, 06:06 AM   #62
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This article is a couple of years old, but I found it interesting:

Identity theft tax refund fraud

This is a big part of the problem:

Quote:
Of course, the IRS keeps records of earned wages and other types of taxable income reported by taxpayers’ employers and other organizations. However, the IRS doesn’t match these records to information submitted electronically by identity thieves until several months after it issues refund checks.
How is it that this hasn't been fully automated for at least a decade? The same for every other form submitted by a 3rd party. If it has my SS# on it, it should be matched or rejected automatically, especially if I'm e-filing.
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Old 03-08-2016, 06:16 AM   #63
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Originally Posted by gauss View Post
There is no e-fling of amended returns. They are all paper filed.

-gauss
And the refunds, if any, are by check only, as I understand. So much for *that* strategy
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Old 03-08-2016, 07:23 AM   #64
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I tell you this....the scum who steal other people's identity or commit fraud...if caught and found guilty should be EXECUTED! These vermin are not even human. Absolute trash who are worthless and contribute absolutely nothing to society.

Imagine if you are in the process of buying a house and your loan application is rejected because criminals have taken out huge amounts of credit in your name? Not to mention the endless hours you will need to spend on the phone cleaning up this mess and the endless paperwork involved. COuld take years to resolve. Exterminate the vermin.
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Old 03-08-2016, 07:35 AM   #65
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Wow - what a hassle for Disappointed and others!

So - is the collective wisdom here to do the following (prevention strategy) since I can't get taxes done early (waiting on some info that is not available until Mid-March):

1. Manufacture and file a tax return in which I owe no taxes, and maybe get a very low refund of $5 asap after January 1st, and

2. Complete an amended return (final) by April 15th...?

Thanks for any comments.
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Old 03-08-2016, 07:41 AM   #66
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1. Manufacture and file a tax return in which I owe no taxes, and maybe get a very low refund of $5 asap after January 1st, and
I'd urge caution here, especially when it comes to "manufacturing" a tax return.

While I also follow a "file early to beat the crooks" strategy, I'm not comfortable in doing so before early to mid February when I have almost all of my information. That way any amended return I need to file isn't a major change, thus less likely to get the attention of the IRS.
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Old 03-08-2016, 08:20 AM   #67
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What boggles my mind is that I've read about some of these fraudsters filing hundreds of phony returns that all have the refunds sent to the exact same address.

If that isn't something the IRS should be able to spot automatically, then it is utterly incompetent and someone ought to be held criminally liable.
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Old 03-08-2016, 08:30 AM   #68
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Meanwhile it's been a month since I e filed and my return was accepted by the IRS but I'm still waiting for my refund. I guess I'm one of the 10% of e filers who don't get their refunds in less than 21 days. The "where is my refund" site states that it's still being processed.

Hopefully the reason for the delay is that my return is being scrutinized because of a 75% reduction in income (my first full year of retirement) and a substantial 401K rollover to an IRA.

I actually don't care if I don't receive my refund until May as long as the process is done accurately with W2s and 1099s as well as other records are matched to reduce the risk of fraud.
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Old 03-08-2016, 09:05 AM   #69
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It's bad! Crooks are filing by Feb 2nd. How can even aggressive early filers beat that?

Quote:
Last week, this blog told the story of Becky Wittrock, a certified public accountant (CPA) from Sioux Falls, S.D., who received an IP PIN in 2014 after crooks tried to impersonate her to the IRS. Wittrock said she found out her IP PIN had been compromised by thieves this year after she tried to file her tax return on Feb. 25, 2016. Turns out, the crooks beat her to the punch by more than three weeks, filing a large refund request with the IRS on Feb. 2, 2016.
Latest from Krebs: IRS Suspends Insecure ‘Get IP PIN’ Feature http://krebsonsecurity.com/2016/03/i...p-pin-feature/

The IRS has already suspended KBA type questions for retrieving IRS transcripts last year because >600,000 people had their tax records fraudulently accessed this way!!!

I didn't realize you could still retrieve your special Tax ID Fraud IP PIN online! I thought people had to call in to get the PIN and answer those questions - still very faulty. It's hard to believe they still relied on this mechanism after it compromised so many people last year and allowed so many fraudulent returns to be filed. Why wouldn't thieves use the same mechanism to get people's special IP PINs if they were using the same insecure mechanism?!?!?

The questions asked are ridiculous - what county do you live in, make of car you drive, - these are things easily googled. If someone has your address, DOB, and social security number they have everything they need to find out a lot more about you and your credit history.
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Old 03-08-2016, 09:08 AM   #70
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Meanwhile it's been a month since I e filed and my return was accepted by the IRS but I'm still waiting for my refund. I guess I'm one of the 10% of e filers who don't get their refunds in less than 21 days. The "where is my refund" site states that it's still being processed.

Hopefully the reason for the delay is that my return is being scrutinized because of a 75% reduction in income (my first full year of retirement) and a substantial 401K rollover to an IRA.

I actually don't care if I don't receive my refund until May as long as the process is done accurately with W2s and 1099s as well as other records are matched to reduce the risk of fraud.
One big problem is that the IRS is required by law to process returns and refund money way in advance of having the information by employers and financial institutions to verify the return. So it's a send refund, verify later situation. This is a major contributor to the current situation in that it gives the fraudsters a huge opportunity to take advantage of the lack of verification.

That and sending money to VISA gift cards.
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Old 03-08-2016, 09:35 PM   #71
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Hmmm - Turbotax strongly suggests we supply our driver's license numbers as part of filing to help combat any potential fraud. First I have heard of this.
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Old 03-08-2016, 09:43 PM   #72
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Originally Posted by dixonge View Post
This article is a couple of years old, but I found it interesting:

Identity theft tax refund fraud

This is a big part of the problem:



How is it that this hasn't been fully automated for at least a decade? The same for every other form submitted by a 3rd party. If it has my SS# on it, it should be matched or rejected automatically, especially if I'm e-filing.
Because the IRS does not receive that information from the companies until months after an early filer someone has filed a return. It's a real problem. Companies provide W2 information to employees way before the IRS gets the same.
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Old 03-08-2016, 09:48 PM   #73
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I e-filed my taxes today using Turbotax and did go through the license part. I almost made the mistake of e-filing but not supplying my protection PIN that I received via snail mail. I stepped through close to when to e-file waiting for a box to enter my PIN when I decided to do a search on the protection PIN. Ends up entering the PIN is in a section of other tax items which I overlooked. I am glad to say that my fed e-file did get accepted .
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Old 03-08-2016, 09:49 PM   #74
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Originally Posted by audreyh1 View Post
Hmmm - Turbotax strongly suggests we supply our driver's license numbers as part of filing to help combat any potential fraud. First I have heard of this.
H&R Block tax software also recommended we supply our TDL#s when we filed last month. Happy to do so if it helps stop fraud.
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Old 03-08-2016, 10:01 PM   #75
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Originally Posted by Disappointed View Post
I just submitted my Fed Tax Return through TurboTax this morning and received an email stating that my return was rejected

"This return was rejected by the IRS because the taxpayer's identification number assigned to this return has already been filed and accepted by the IRS ?"

This is not good. Looks like somebody already filed under my SS?

Advice please! How to contact the IRS and how to correct this problem?

Thanks,
MP
This Turbotax article tells you how to contact the IRS and report the problem:
https://turbotax.intuit.com/tax-tool.../INF23035.html
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Old 03-08-2016, 10:02 PM   #76
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Because the IRS does not receive that information from the companies until months after an early filer someone has filed a return. It's a real problem. Companies provide W2 information to employees way before the IRS gets the same.
I don't understand why. The employer is required to pay taxes withheld to the IRS monthly or semi-monthly, so they should have info for W-2 wages. What could be the issue with reporting to IRS on the same schedule used for taxpayers?

https://www.irs.gov/Businesses/Small...ployment-Taxes
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Old 03-08-2016, 10:16 PM   #77
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I'm so lucky this does not affect me.
Because I am again paying extra taxes (thanks Mutual Fund ).

The silver lining is, if the IRS rejects my return, I want them to reject my tax payment as well.
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Old 03-08-2016, 10:21 PM   #78
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I don't understand why. The employer is required to pay taxes withheld to the IRS monthly or semi-monthly, so they should have info for W-2 wages. What could be the issue with reporting to IRS on the same schedule used for taxpayers?

https://www.irs.gov/Businesses/Small...ployment-Taxes
I have no idea. But when I read about the trouble with tax return verification last year, one of the issues that came up was the IRS not having the company W2 information because companies weren't required to submit it until later in the year.

Yes, that seems dumb.
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Old 03-08-2016, 10:27 PM   #79
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eFiled and keeping my fingers crossed AND knocking on wood! (no bad news yet).

We filed much earlier this year than we usually do. We usually wait until the end of March to make sure no changes in 1099s, etc.

This is an arms race now - a percentage of filers filing much earlier than usual, because their worried about the fraudsters filing early. It's probably not a huge percentage, but still significant, I imagine.

I hope we get off this crazy race next year! It can't be that hard to nip this in the bud!

Edited to add: accepted less than an hour later. Whew! We have been stressing over this.
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Old 03-08-2016, 10:49 PM   #80
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H&R Block tax software also recommended we supply our TDL#s when we filed last month. Happy to do so if it helps stop fraud.
Mulled over it a bit and read what little I could find online. But I decided it was information they would ask for anyway if someone had filed a fraudulent return with either of our SS numbers.

They didn't just ask for the number, but also the issue and expiration dates.
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