[ds968]

On Friday, among various other pieces of mail I noticed an envelope from the IRS . Considering that my 2015 taxes have not yet been filed, the timing of the letter led me to a single and immediate conclusion : it's an audit notification. Crap ! So I started thinking about what a hassle it's going to be trying to find and gather a ton or records, sit through the process of some agent examining and nit-picking everything they can, and even though I have absolutely nothing to be concerned about in terms of any prior filings' accuracy and knowing that nothing at all in those filings could possibly be construed as "questionable" , I nonetheless dreaded the thought of going through what is undoubtedly a time consuming, useless and annoying exercise.

And then I opened the envelope and read the letter ; I WISH it would have been an audit notice ! Instead, I was informed that the IRS received a 2015 filing with my name and my social security number on it, but their system detected some irregularities so they are requesting me to contact them in order to verify my identification and confirm whether the filing is valid, or, if my identity and SS number has been compromised and used by an identity thief . Last year the IRS received more than 8 million fraudulent filings , seems this year it's my turn to add to those stats.

But the IRS issue is the least of my problems now ; all that happens there is the fraudulent return is not processed by the IRS , and that's the end of it. One phone call resolves that problem. However, someone out there has my social security number and the IRS filing is likely just one among a multiple web of far more troublesome identity theft violations which could be perpetrated and the resulting nightmares trying to correct them. You hear and read about horror stories people spending YEARS to restore their lives after identity theft happens, and now I may be one of those ..

The saga starts ...

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[Rap]

I have a friend who has had this happen to him twice. Lot to be said for a cash economy!

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[wildcat]

I would double check the letter you received from the IRS, it may be a scam itself to get you to reveal SSAN # or other miscellaneous information. 

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[ds968]

Checking the authenticity of the letter was first on the list ; unfortunately it's a legitimate one.

Incidentally, my tax accountant said he had a couple of clients whose filings ( a number of years ago ) were rejected by the IRS because the agency showed the respective filings to have already been processed since nothing appeared to be out of the ordinary...until the "duplicate" ones came in. More than half of fraudulent filings still get professed by the agency ..the others , in the category I belong , are held up until the ID verification process takes place . I'll find out for sure tomorrow when I connect with the IRS , but I suspect what may have triggered their computer program to set this aside and send me the altert was either it being a single or separate filing ( as opposed to our joint filings which has always been the case for more than 40 years ) and/or the fact that all these fraudulent filings show a refund due, whereas for a long, long time ( estimating 15-20 years ) we have always owed additional taxes at the time of the filing.

Although I expect the worst and hope for the best , my accountant did say that neither one of those two clients' identity theft went any further than the IRS filing scam, so no bank accounts breached, no credit cards or other accounts opened up in their names, or similar activities but from what I read that's more of an exception than the rule because these crooks usually commit the crime witn a far boader approach than just a single purpose facet.

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[MCL968]

No big deal, I had that happen a few years ago. Someone without a SSN used mine to work in a restaurant, and the IRS wanted to know how I had such different jobs in such different areas. I simply told them that it was not me, and they thanked me. Then I asked if I could receive their refund.

 

I had briefly forgotten about the notorious sense of humor within the IRS. The stereotype is in no way inaccurate.

 

You will probably have to file a form and sign something, overall it was no big deal.

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[wildcat]

My father with his wry sense of humor and rather stoic persona would answer the phone  "Internal Revenue Service, how may I help you.." and frequently people would hang up.

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[Rap]

The IRS is the most powerful institution in the world. The President of the US pales in comparison. Once they put you in their sights, there is no turning back or overriding them. The President doesn't control them nor do the other two branches of gov't. Their powers are unrivaled and unchecked. Ever wonder why there has never been any tax reform?

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[ds968]

Yes they sure are ( the IRS ).

So I spoke to one of the agents today ; she was about as courteous, professional, personable and helpful as anyone ..took care of the filing problem quickly, but now it's on to the drama of contacting all the other sources to determine if any unauthorized activity has taken place, and to put in place measures that mitigate the risk of future and wider spread fraud .

I do subscribe to a credit monitoring service but that only provides quarterly reports , so a lot of time can pass from when an infraction happens until I receive the notice , and secondly, they only address credit inquiries and / or new accounts that are opened under my name. So no way to detect reports do bank or other assets accounts breaches , or expensive medical treatment where they present a fake ID and give my name and SS # as the guarantor , or drivers licenses in various states , or " pay as you go " cell phones , or even passport applications if they're ballsy enough , and heavens forbid other crimes committed for which they get caught and their booking and fingerprints end up in a file with my name and SS # on it. As far fetched as some of those scenarios may sound, they can certainly happen, because they have happened to others .

So I placed a fraud notice / freeze with the three bureaus today , tomorrow morning Im sending the ID theft form into the Federal Trade Commission , and then filing a local police report ( not because they can do anything about this , but because a lot of those institutions and agencies require a copy of the police report before they start their process ) and then in the spare time left I'll have work so I can earn the money I need to pay the IRS next month when I file the real return, instead of getting that refund the crooks were counting on..

One exception to all this ; if the thieves open up credit card accounts in my name and go on spending sprees , I'm not reporting it because chances are they'll spend less money than I usually do ... :-) :-)

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[BeBe]

I had my identity information stolen from the Office of Personnel Management.  In the space of five days, I got three new credit cards that I never requested -- all with balances.  It took over 4 months to get that cleared up.  In addition to the freeze you initiated with the credit bureaus, you probably want to set up a medallion signature requirement with any mutual funds/brokerage accounts you have so nobody can represent themselves as you and drain those accounts. 

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[ds968]

Thanks for the tip re " medallion signature " Greg, I have contacted all the financial institutions where I have accounts and requested a freeze on any withdrawals or transfers to any outside accounts whatsoever, without first verifying my identity by using the various security questins set up when tne account was opened . But will check to see how the medallion signature works and add that as another security measure with those institutions .

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[BeBe]

My problem was that it was security clearance information which was stolen, which is basically everything -- SSN, relatives names, mother's maiden name, past addresses, nearest relative, high school/college attended, etc.  Many security questions have something to do with your past, so the impostor would know, or be able to figure out, some of the answers (at least in my case).

 

A medallion signature guarantee requires you to show up in person at a financial institution, prove who you are, and sign whatever document in their presence.  They then stamp the document guaranteeing that it was you (sort of like a notary).  It's a pain in the a**, because you lose the convenience of making telephone transfers, etc., but it's different to get a bank to write off charges that you didn't make vs. figuring out who will return money that was removed from your account -- particularly if they provided correct answers to the identification verification questions.

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[94SilverCab]

Tip: Never answer security questions truthfully...

 

Jay

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[BeBe]

That is a good tip. I don't anymore, but then you have to remember what you made up.

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[94SilverCab]

That is a good tip. I don't anymore, but then you have to remember what you made up.

 

Example:

 

What is the name of your best man?

 

Stinkyfinger (nickname from college that no one wants to admit)

 

JMHO,

 

Jay

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