Fed Tax E File Rejected - somebody already filed using my SS number - what to do?

[audreyh1]

Quote:

Originally Posted by Sunset 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.

You think this does not affect you because you owe taxes this year?

You'll still have to deal with cleaning up a mess. It doesn't matter whether you expect a refund or not. Someone can still impersonate you and get a refund and make a mess.

[Al in Ohio]

Quote:

Originally Posted by Sunset 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.

.Link? Never heard of multiple refunds going to a single address. I heard the thieves employ numerous friends and relatives all with a different names and addresses.

Here's part of the problem.

http://thehill.com/policy/finance/24...38m-cut-to-irs

You can't increase cyber security when your budget gets slashed. I heard budget cuts in some areas of fraud will lead to one tenth previous ability to check for accuracy.


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[audreyh1]

The refunds are not (necessarily) going to addresses where someone has to wait to get a check in the mail and go cash it (and deal with identification issues). They are being directly deposited in accounts - each one to a different prepaid debit card. That looks like different bank accounts from the outside.

Quote:

By May of 2014, Peleus reported that he’d more or less worked out the best ways to avoid the IRS’s fraud filters, and was finding great success at the state level. The key, he said, was having the bogus refund sent to a unique prepaid debit card account for each filing. In this case, he found success with Green Dot — a widely-used prepaid card.

http://krebsonsecurity.com/2015/03/t...-the-scammers/

Now - the refund might not be going to an address, but the filer still has to supply an address. There is still a possibility to flag this, although there may be legit reasons for multiple filings from the same address.

[harley]

Quote:

Originally Posted by Al in Ohio .Link? Never heard of multiple refunds going to a single address. I heard the thieves employ numerous friends and relatives all with a different names and addresses.

Just a quick google turns up some information. From a trusted source. Thousands of Tax Refunds Sent to the Same Addresses : snopes.com

[unclemick]

Quote:

Originally Posted by Disappointed 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

Not this problem but concerning some questions post Katrina I found the local IRS office(in the main Post Office building then since moved) taking the time to go there and dealt with live humans who worked the issues via IRS computers. Took several trips but it was worth it.

heh heh heh - nice elderly ladies.

[foxfirev5]

Quote:

Originally Posted by audreyh1 You think this does not affect you because you owe taxes this year? You'll still have to deal with cleaning up a mess. It doesn't matter whether you expect a refund or not. Someone can still impersonate you and get a refund and make a mess.

True statement. However I would much rather clean up the mess than have the added worry of when will I receive a sizeable refund. That's why I suggested earlier to file a paper claim and apply the refund to next years taxes. Of course that would only work if you have a refund and expect to owe taxes in the coming year.
Due to large 401k w/d's with mandatory withholding I expect to have a large refund next year. Being a belts and suspenders guy I'd like to have a plan B & C in place if there's a problem. I'm learning a lot from this thread. Thanks

[Fedup]

I know I have to clean up the mess even if I don't get a refund but at least I'm not spending the energy and time expecting a refund. I have time to waste but not money to waste.
Maybe the IRS can ask for an electronic copy of a utility bill submit with the tax form, if it matches the W-2 then the IRS can release the money. If not, they can delay the refund. Any small measure will be good.


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[audreyh1]

I was just responding to the comment

Quote:

I'm so lucky this does not affect me. Because I am again paying extra taxes.

Of course, it's not quite as bad if you aren't waiting for a refund. But it certainly affects you regardless - you'll have to deal with letters from the IRS, proving your identity to them, and dealing with the general consequences of proven ID theft as well an extra step in future tax filings now that you are an established victim of tax fraud.

[Big_Hitter]

Quote:

Originally Posted by audreyh1 I was just responding to the comment Of course, it's not quite as bad if you aren't waiting for a refund. But it certainly affects you regardless - you'll have to deal with letters from the IRS, proving your identity to them, and dealing with the general consequences of proven ID theft as well an extra step in future tax filings now that you are an established victim of tax fraud.

you may have to sign an affidavit of forgery and you may have to go to the IRS office in person - not sure which one of those is worse

[Alan]

Quote:

Originally Posted by audreyh1 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.

I also noticed this and reported it here.

I assumed it was a new IRS feature for combating fraud and was happy to provide details.

Quote:

Originally Posted by audreyh1 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.

I shouldn't be surprised (but am) that retrieving your IRS PIN is so easy.

[audreyh1]

Quote:

Originally Posted by Alan I shouldn't be surprised (but am) that retrieving your IRS PIN is so easy.

It just drives me bonkers that a system that had already been established as insecure for "Get Transcript", with now 700,000 victims having their IRS records fraudulently pulled, was still being used online for retrieving the IP PINs given to those same tax fraud victims for their supposed protection!

Since these IP PINs for tax fraud victims are mailed, why would retrieving a lost one not be mailed again? Even if the online retrieval is shut down, can someone still phone in to retrieve their IP PIN and be asked those same dumb insecure questions from their credit report?

I'm glad I didn't try to get the special IP PIN for identity theft victims.

If you've frozen your credit history you are safe from credit history questions being asked to establish your identity so you're much less likely to be a victim of tax fraud.

[Disappointed]

I am a bit surprised that no safety check was built into the original software of E-File?
I have been using the same address for more than 20 years. Also, have been using the same bank account to pay or receive the refunds for more than 20 years. I have been reporting investment incomes from Fido for more than 15 years.
Any of those changes should flag the return for a human review before a refund is issued.

[jazz4cash]

Quote:

Originally Posted by REWahoo 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.

Providing DL data does not make me feel any better at all, especially through a 3rd party. It is part of the IRS fraud filing including photocopy of DL.

[MichaelB]

I saw the TurboTax DL request when DD filed and again when I filed for DM. It's about time they started to get serious about security, people forget how their online accounts were used for many of the fraudulent filings and how their response was "not my problem" because the fraud was not against them.

The IRS is stuck here, there is nothing they can do that does not raise the ire of some constituency in the US. There is no easy solution for them because tax filing involves many third parties. Still, there is nothing keeping them from developing a more secure "account" structure that would be voluntary and available to all of us.

[JoeWras]

Quote:

Originally Posted by Disappointed I am a bit surprised that no safety check was built into the original software of E-File? I have been using the same address for more than 20 years. Also, have been using the same bank account to pay or receive the refunds for more than 20 years. I have been reporting investment incomes from Fido for more than 15 years. Any of those changes should flag the return for a human review before a refund is issued.

Everyone keeps saying this, and I agree. I.E. if the following apply, disallow or gate e-file:
- change of address
- Income different by 20%
- etc.

But here's the deal: Congress and the Administration don't want the delay because the taxpayers want their refund NOW.

This is less an IRS problem and more a political problem. The IRS has very smart people doing their programing. They could easily do a bayesian match from previous year's forms. Any kicked out would require further processing, and the taxpayers don't want that. They want their refund now!

Enter the third rail of elections, and bam, it won't happen.

[audreyh1]

Quote:

Originally Posted by Disappointed I am a bit surprised that no safety check was built into the original software of E-File? I have been using the same address for more than 20 years. Also, have been using the same bank account to pay or receive the refunds for more than 20 years. I have been reporting investment incomes from Fido for more than 15 years. Any of those changes should flag the return for a human review before a refund is issued.

Yes, that is extremely disappointing! (no pun) Seem like red flags to me!

There is a check - you supply a PIN to eFile. This PIN is used in lieu of your signature on the form. (This is different from the IP PIN provided to victims of tax fraud). This signature PIN was established when you first eFiled, and I think you needed some data from the previous paper file. Not sure how that plays into the problem. Seems like the ID thieves would have to establish a new one? If they have prior year info they might be able to.

[easysurfer]

Would be nice if the IRS implemented some sort of extra security feature like the SSA's 2nd factor authentication to mobile. When my SSN got hacked, I didn't mind at all going to a Soc Sec office to get the 2FA set up.

[sengsational]

I was not at risk for this at all because I had nothing withheld (my expectation, which did come about, was that they'd be paying me). Next year, I'll be at risk due to the 20% withholding after drawing from the 401K. Since I usually can get exact numbers for almost everything, I'm inclined to file before the thieves, even though some forms may show up and have some small differences.

Quote:

Originally Posted by audreyh1 I was just responding to the comment Of course, it's not quite as bad if you aren't waiting for a refund.

What's better is to not have anything withheld at all, then the thieves won't have anything to get. I'd join a class action suit against the IRS to prevent withholding because they can't be trusted to keep the money I send them secure. We all pay for that fraud.

Quote:

Originally Posted by audreyh1 If you've frozen your credit history you are safe from credit history questions being asked to establish your identity so you're much less likely to be a victim of tax fraud.

I'd like this to be the case, but it seems like even though I've got my credit frozen, I encounter those questions sometimes.

[audreyh1]

Quote:

Originally Posted by sengsational I was not at risk for this at all because I had nothing withheld (my expectation, which did come about, was that they'd be paying me). What's better is to not have anything withheld at all, then the thieves won't have anything to get.

Why do you think you aren't at risk? The tax fraud has nothing to do with withholding.

Understand that the thief has no idea if you have a refund coming - that doesn't matter. He just files the form using your name and SS that makes it look like he is owed a big refund sent to his cash card.

The thief is not stealing money already earmarked for someone's refund, he is stealing government money using that person's credentials by making up a fake return that claims a refund is owed, and directing that refund to go to him (the thief).

[rbmrtn]

Quote:

Originally Posted by JoeWras But here's the deal: Congress and the Administration don't want the delay because the taxpayers want their refund NOW.

+1000. This is the root of the problem. There is a congressional mandate to send out refunds as soon as the return is received. There is no way proper verification can be done.

The irony is the same people were in an uproar over income verification on health exchanges