[Note from Meg: This is actually a years-old blog post that, thanks to some tech snafu, has been published anew. Still looks relevant, so there you have it!]
A few of his work associates did not file their taxes ASAP, and by the point they did, they found that the returns had already been filed, a refund claimed, and that refund paid by the IRS. Paid to another person.
I at first thought, “Oh, hey, this should solely be an issue if you’re due a refund, so you need to arrange your taxes so that you aren’t due a lot of a refund.” However no (and will I add alone behalf, DUH), it doesn’t matter what your tax state of affairs is in actuality. Individuals who file fraudulent tax returns in your identify can simply Make Shit Up. They’re beneath no obligation to report any actual numbers.
Whether or not you’re due a refund, or you will have tax due, if somebody recordsdata a fraudulent tax return in your identify, then while you file your taxes, the IRS will mainly say, “Um, dude? You already filed your taxes. You possibly can’t file once more.” At which level, you say, “DUDE. I did not already file my tax return” after which proceed to have a nervous breakdown.
I’ve by no means handled this myself or with a consumer, however I’m assured that each one hope just isn’t misplaced. Your taxes will finally be straightened out.
If you’re due a refund, you’ll finally get it. Simply settle in for months (and presumably months) of annoying administrative work. Which does, the truth is, argue for not overpaying taxes an excessive amount of all year long, lest it’s a loooong time till you see that cash.
This text talks about what to do in the event you discover that somebody has filed fraudulently in your identify. However my entire level on this publish is to go alongside preventative recommendation.
Two methods to guard your self from fraudulent tax returns that make your life an administrative nightmare:
#1 (Essentially the most dependable) Get an Id Safety (IP) PIN from the IRS.
And I quote (the IRS):
The IP PIN is a six-digit quantity assigned to eligible taxpayers to assist stop the misuse of their Social Safety quantity on fraudulent federal earnings tax returns. An IP PIN helps the IRS confirm a taxpayer’s identification and settle for their digital or paper tax return. When you will have an IP PIN, it prevents another person from submitting a tax return together with your SSN.
Oddly, this system isn’t but obtainable nationally. However in the event you filed a tax return in 2018 in New York, California, or Washington, you’re good.
#2 (Maaaybe useful) File your taxes as early as potential.
In case you get your tax return in earlier than the unhealthy man does, then you definately win! As good as that sounds, I’m unsure how sensible that is, nevertheless, as criminals can file taxes on Day 1 (they’re simply making sh*t up, in spite of everything) and also you, realistically, aren’t submitting till at the very least February.
If you wish to discover working with a monetary planner, attain out to me and schedule a free session.
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Disclaimer: This text is supplied for common info and illustration functions solely. Nothing contained within the materials constitutes tax recommendation, a suggestion for buy or sale of any safety, or funding advisory providers. I encourage you to seek the advice of a monetary planner, accountant, and/or authorized counsel for recommendation particular to your state of affairs. Replica of this materials is prohibited with out written permission from Meg Bartelt, and all rights are reserved. Learn the total Disclaimer.