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Getting a SSA-1099 for phantom SS income
Old 02-28-2018, 09:49 AM   #1
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Getting a SSA-1099 for phantom SS income

We've had a thread or two about folks claiming SS benefits that are not theirs...and now...

"Tim Sagert has been enduring the pain of a double-whammy of identity theft.

First, a crook used his stolen ID to claim Social Security benefits last spring. Then this tax season, Sagert was hit with an SSA-1099 tax form for reporting the income paid to the crook....

Why should he have to fret about the possibility of paying income taxes on $2,095 in Social Security benefits when a fraudster stole the money? And why is he stuck constantly calling and trying to straighten things out with Social Security?"


https://www.freep.com/story/money/pe...its/354307002/


omni
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Old 02-28-2018, 10:22 AM   #2
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I used to hope someone would steal my SSN and supply it to their employer to work. Then I'd get the credits and a bigger SS.

Never happened....
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Old 02-28-2018, 01:52 PM   #3
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I am the victim of SS identity theft. I was receiving spousal payments, a thief filed for SS benefits on my own account and got $4000 in retroactive payments. I have been to the local SS office, they say this is a big problem. I did not get my February SS payment so it is not fixed so I plan to go back to the SS office tomorrow and wait for hours to see someone, no appointments available. Now I read this article that I will have tax problems with my SSA-1099. What a nightmare. I thought I had done everything right--credit freezes, open a SS account, etc. but someone still stole my SS benefits. I blame the Equifax breach. Can I sue Equifax?
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Old 02-28-2018, 02:27 PM   #4
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Originally Posted by harllee View Post
I am the victim of SS identity theft. I was receiving spousal payments, a thief filed for SS benefits on my own account and got $4000 in retroactive payments. I have been to the local SS office, they say this is a big problem. I did not get my February SS payment so it is not fixed so I plan to go back to the SS office tomorrow and wait for hours to see someone, no appointments available. Now I read this article that I will have tax problems with my SSA-1099. What a nightmare. I thought I had done everything right--credit freezes, open a SS account, etc. but someone still stole my SS benefits. I blame the Equifax breach. Can I sue Equifax?
harllee,

Sorry to hear that you are having to deal with this, through no fault of your own.

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Old 02-28-2018, 04:43 PM   #5
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Bottom line -- legally there would not be any income tax due on money that wan't received.

Thoughts: Work with SSA and law enforcement to document this. Get copies of everything to share with IRS when this becomes necessary. Perhaps attach a statement to your return showing why the SSA statement money is not showing on the return.

IRS has provisions to deal with identity theft, but I am not sure if that area has published guidance yet on how to deal with a case like this -- would need to do some research.

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Old 02-28-2018, 05:18 PM   #6
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I have filed an identity theft affidavit with the IRS. I guess the tax issue will come up next year when I file a 2018 return since all this started at the beginning of 2018.

My problem now is with Social Security. While the local SS office acknowledged the identity theft and said it would all be fixed nothing has been done to correct it after 6 weeks. I still have not got my Feb. payment after hours on the phone with SS and in their office. It takes forever to get through to SS on the phone and you have to wait hours in their office to see anyone. No appointments are ever available. I think SS is woefully understaffed.
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Old 02-28-2018, 05:24 PM   #7
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Quote:
Originally Posted by harllee View Post
I have filed an identity theft affidavit with the IRS. I guess the tax issue will come up next year when I file a 2018 return since all this started at the beginning of 2018.

My problem now is with Social Security. While the local SS office acknowledged the identity theft and said it would all be fixed nothing has been done to correct it after 6 weeks. I still have not got my Feb. payment after hours on the phone with SS and in their office. It takes forever to get through to SS on the phone and you have to wait hours in their office to see anyone. No appointments are ever available. I think SS is woefully understaffed.
When I needed to interact with SSA several years ago, I found a similar situation. What somewhat worked for me was the following:

- Walk into SS office and sign into the automated kiosk and receive a number.
- check the current number being served
- come back when you think they are closer to serving your number

Being ER'd at the time allowed me to run this play.

In my case eventually everyone was made whole, but in my case, I could afford to float them the $2,000 loan for the 9 months or so that it took to resolve.

-gauss

p.s. the $2,000 was related to setting my late Father's estate - I personally have no plans to apply for SS for over 15 years from now. Really hoping that it is still there when the time comes...
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Old 02-28-2018, 05:27 PM   #8
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guess, thanks for the tips. I am going to the SS office tomorrow. The office closes at 4 pm. I will go around 3 pm. I have learned that there are fewer people there near closing and so far they have taken everyone that is checked in before closing. One problem is that I have to see a supervisor for fraud cases so i have to go through the line twice.
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Old 02-28-2018, 05:42 PM   #9
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Originally Posted by harllee View Post
guess, thanks for the tips. I am going to the SS office tomorrow. The office closes at 4 pm. I will go around 3 pm. I have learned that there are fewer people there near closing and so far they have taken everyone that is checked in before closing. One problem is that I have to see a supervisor for fraud cases so i have to go through the line twice.
Your welcome,

Please keep us informed on how this plays out. I suspect that we will see more of this going forward and having information on how it can be resolved will be useful to everyone.

-gauss
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