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Yikes! My e-filed Tax return was highjacked!

1398 Views 17 Replies 15 Participants Last post by  Betsy the Quilter
Yep, I'm one of those unfortunate people who got the call from their Tax Person this morning that our 2014 e-filed Tax report was REJECTED by the IRS because they said someone else had already filed in my husband's name using his SS number (we file jointly). I was floored when I got the call and...scared. My husband has a regular job and had a large refund which was absorbed into my return because I have to pay 35% on my book income. Now what do we do? My tax person said we had to file a Police Report (she sent us a form we had to take in to them) and send in our tax returns through the mail the old way and she attached a special paper to them saying we were a victim of tax fraud. I had vouchers (for every 3-months, 4 times a year) I had to send in with the tax money I owed but had already sent them in days before this happened; so I noted on the snail mail returns that I had already paid (hope that works).  I sure hope this will be okay. We were also advised to check our credit reports, etc, maybe get LifeLock Identity Theft protection, in case this leads to a full identity theft situation - Lord, I hope not! Anyway, my tax person also said that she already had 35 people that this has happened to this year and there's still almost three weeks until April 15. Last year was 5. I know we're advised to file early...but the mess up with Amazon's 1099's being wrong pushed it later than we've ever filed. This ever happen to anyone else?
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I'm so sorry!! What an awful situation! Crossing my fingers it all gets resolved quickly and easily :)
The exact same thing happened to me about a month ago. My husband always files for us electronically (we file a joint return), and when he pushed the “send” button we received the immediate notification that someone had already filed using my SSN. We called the IRS the next day and had it confirmed. And get this: Someone tried to do this last year with my SSN but we filed before them and so they got the “reject” message instead. Now, you’d think the IRS would have notified us about that, but nope, it was news to us.

Anyway, we were also told to mail the forms in the old fashioned way along with an identity affidavit, and that it would take up to 180 days to get our refund. So we did that, put alerts out to the credit bureaus, the bank, etc. What a pain in the patootie. I know it’s not really Amazon’s fault, but I’m blaming them anyway. If we hadn’t had to wait an extra couple of weeks for those corrected 1099s, we would have beat the fraudsters to the punch. My husband is still fuming over it.

The same thing happened to a friend of ours here in town. It sounds like it’s an epidemic this year.
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Probably a stupid question, but isn't there any level of security at the IRS? In Denmark we have a special ID-number and a keyring that gives out random codes you have to type with the number. The risk that anyone should gain access to your number and steal your keyring is very rare. I use mine when communicating with authorities like the IRS, paying bills, forwarding mail, yes, even extending my library books. I'm amazed that you don't have a more strict system?
This happened to me about four years ago and I also had to file paper taxes. Now the IRS send me a pin number every year that I have to include with my e-return.

Oy, I'm so sorry this happened. Keeping fingers crossed for a speedy and just resolution.
Katharina...now that sounds like a good idea...maybe our IRS will have to do something like that since this tax fraud is becoming an epidemic. Someone mentioned a pin number and perhaps we'll be sent one for next year.
M.B....it is a real pain in the butt. But what scares me is what will come next? Total identity theft? My tax person and our bank both said that usually in this case the tax fraud is all there will be...I'm hoping so.
Thanks to Chaku and Julz for the sympathy. Today was crazy. Poor hubby had to run all over the place to clear this up.
A few years ago our credit card number was stolen and used in the Schnuck's debacle and now this! What is the world coming to?
In Canada we have PIN numbers too for online filing. God, what a nightmare. Taxes are bad enough as it is. I hope this gets sorted for you with no fall-out to come.
They didn't get YOUR refund . . . they made up a bogus W2 and filed and got a fraudulent refund.

Your tax person probably told you this, but File A POLICE report. . . . no they won't do anything -- can't really -- but it's on record. And check out this page on www.irs.gov regarding what other steps to take to protect yourself in the future. Mainly, it means you have to file on paper and it'll take a while to sort out. :( And likely you will both get Identity Protection (IP) PINs to use next year.

http://www.irs.gov/uac/Taxpayer-Guide-to-Identity-Theft

I've had two of my clients this year have this happen -- these are folks whose returns I've been doing for years. :(
Kathryn Meyer Griffith said:
Katharina...now that sounds like a good idea...maybe our IRS will have to do something like that since this tax fraud is becoming an epidemic. Someone mentioned a pin number and perhaps we'll be sent one for next year.
I'm so sorry to hear this happened to you. Last year when I filed my taxes electronically, I was asked if I wanted to sign up for an Identity Protection PIN (which I did), and I followed the link to the IRS's site to get mine. Apparently, not everyone is eligible to get one yet. I hope the IRS gets this rolled out to everyone this year.
Ann
yes my husband went up and filed a police report and, on our tax person's advice, notified the three protection agencies. We filed the old way with paper with an Identity Theft Affidavit attached. All we can do now is hope that will take care of everything. You know the weirdest thing is you hear about these things all the time on the news, etc., and never think it will happen to you...and then it does. Suddenly you're the statistic. But my husband is of the mind: we'll get through this too. Of course he's right. One day at a time. That's life. 
This happens quite a lot actually. We see it every year. Every case that I knew ended with the taxpayer getting their refund. It does get delayed, though, and the identity thieves still end up getting away with the theft... anyone ever heard of them being caught?

For the scam to work, the thief has to direct the government to deposit "their refund" in a specific bank account... You'd figure the numbers on those accounts would help finding the scammers, at least occasionally...
I am sooo sorry to hear you have to deal with this. Talk about scary. Hopefully something good can come from it. Who knows; maybe your delayed refund will actually come at the perfect time?

Hang in there. <3
Talked with my accountant the other day and she indicated this is becoming a major problem. The IRS is aware it happens, and I think eventually they'll find a way to reduce it.

Interestingly, though, my accountant said she'd received a phone call from the IRS asking if she'd filed a return, because the return filed was for a client she'd been filing for for years. She said no, and I assume they rejected the return. Not sure how often this happens, though (IRS calling accountant to verify filing).

Very sorry this happened to you.
Now I'm skeered.

My accountant called my into a meeting tomorrow when normally he just files.

Me boots are quakin'!
On the PIN, for electronic filing, I have always been required to enter either a PIN (which we got on a postcard several years ago) or an exact number from the previous years return. I think Adjusted income? But it was something you would have to have access to our return to get.
Scott Esteban said:
On the PIN, for electronic filing, I have always been required to enter either a PIN (which we got on a postcard several years ago) or an exact number from the previous years return. I think Adjusted income? But it was something you would have to have access to our return to get.
yeah . . . I wondered about that, too.

Of course, if you go with a commercial firm, you don't need to do that . . .it's only if you're filing and signing 'digitally'.

O'course: they're supposed to make you prove you're YOU. :)
Scott Esteban said:
On the PIN, for electronic filing, I have always been required to enter either a PIN (which we got on a postcard several years ago) or an exact number from the previous years return. I think Adjusted income? But it was something you would have to have access to our return to get.
Yeah, we have had to do that, too.
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