Discussion:Stolen identity
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| 16 July 2007 | |
| My client received a notice from IRS to pay additional $20K income tax, because they received 1099-misc ($45K) on his name in addition to his regular w-2 that he reported on his return.
I investigated this 1099misc and found out that the company is in IL that is too far away from his NJ home. They confirmed that he worked for them as a truck driver, and provided them with eyes examination from the MVD. But my client declines all the above and I know that he can’t perform this job, because he is blind on one eye. Therefore I assume that my client is telling me the truth. What is the following step should I do regarding this IRS notice? Thanks for you advice. | |
| 16 July 2007 | |
| Does the company have a formal W9 on the driver? Due diligence I would think I would see if the company can prove that he indeed signed the agreement... | |
| 16 July 2007 | |
| I would note the return that the 1099-misc is in error, thank godness it wasn't a W-2, those are extremely difficult to 'get off the record'
If he was a 'truck driver' they should have a copy of his driver's license? right name but wrong picture TexCPA 12:22, 16 July 2007 (CDT) | |
| 16 July 2007 | |
| I don’t know about W-9, but they told me that they have copy of his SS card and copy of his driver license. I’m still waiting for them to fax me all the papers, as they promised.
But the client held the letter from IRS for too long without reply, and if I don’t act now he has to go to court for this matter. So I’m trying to help him out to avoid the court. | |
| 16 July 2007 | |
| The letter is dated May 2, and it says "if you want to contest this determination in court before making any payment, you have until the last date of pettition tax court (90 days from the date of this letter...) to file a petition with US Tax court... | |
| 16 July 2007 | |
| sounds like a 90 day letter to me. This is not the last letter you can expect. I would certainly find out from the issuer of the 1099 if in fact this is the correct individual. I have had my share of clients who aren't exactly upfront when they have 1099's.....
That of course is my opinion. But in order to disprove the 1099; you need to make sure that your client is telling the truth....blindness and all aside. Get with the issuer to make sure they have your client as the recipient. If your client is not forth coming, then I would certainly urge them to file the tax return based on the information IRS has in it's records :) | |
| 16 July 2007 | |
| Sorry, I didn't get it. If the company sends me all the paperwork with a different picture, but the same name and SS, what do I have to do? Send these two sent of documents (legal and stolen) to IRS with explanations? Or maybe negotiate with a company that they file the amendment for their 1098 form? Or tell my client: you are on your own, hire the attorney, it's a criminal case...? | |
| 16 July 2007 | |
| I just got an email. All the documents are there. SS card, and driver license from Oregon with a picture that nothing to do with my client! Wow! I never got this close to such cases! So what do I do? Somebody! Please! | |
| 16 July 2007 | |
| 1) I would send a copy of all that to the IRS along with a letter stating that the income was not your client's.
2) I would have the client get a free copy of each of the 3 credit bureau reports and put a fraud alert in to each of them. | |
Chautauqua (talk|edits) said: | 16 July 2007 |
| A letter from an opthamologist attesting to the blindness could be a big help. | |
| 16 July 2007 | |
| Have the client report his identity theft to the ftc
[[1]] It has happened to several clients of mine down here in Texas, southern neighbor issues... It can be a pain in the neck but you should be okay, Every isuue I had i finally got an IRS rep to see the problem and adjust the account. Good Luck TexCPA 17:30, 16 July 2007 (CDT) | |
| July 16, 2007 | |
| There are companies that now specialize in cleaning up the identity mess. | |
Bottom Line (talk|edits) said: | 17 July 2007 |
| Your client's homeowners insurance policy may have a rider to help with this. | |
| 17 July 2007 | |
| IRS now has the burden of proof under 6201(d) re 1099/W-2, and mere data filed with IRS, nor affirmative statement by the payer, is not "probative evidence." That means they get like canceled checks front/back if paid that way. 6201(d) was a codification of the the Portillo case, where Mr. Portillo was paid in cash. 1099s do not have a presumption of correctness the Court said.
Send whatever you can obtain from the payer, and if no response there, a narrative to IRS explaining the implausibility of the compensation here. However, don't blow the petition date. An attorney is not really needed to petition. The Court (go to its web site) allows a handwritten, fill-in-the-blanks petition for at least an "S Case," appropriate here. T/p (petitioner) states what's wrong with the S/N (90-day) in own words. Like briefly 'splain the implausibility of the erroneous 1099; having informed IRS of such; and stating the respondent has the burden of production under I.R.C. 6201(d); to petitioner's knowledge IRS has no probative documents in its possession. Case is then referred to Appeals for 120 days, and they have seen these before, more so than ever now one can reckon. Appeals can have a summons served on the payer if need be. | |
Kerryfreeman@sbcglobal.net (talk|edits) said: | 17 July 2007 |
| You should also start a case with the secert service fraud unit. They are the ones who handle identity theft cases. | |
| 17 July 2007 | |
| Kerry,
How do I get to them? The situation is that my client left the country, and I assume that he won't be back for a couple of years. However I emailed him a copy of the documents with the thief picture, and he recognized his x-roommate. He knows his cell number and legal name. Where do I have to submit this information? Do you have any link or telephone number? Thanks | |
| 17 July 2007 | |
| Isn't there a saying: "With friends like that, who needs enemies?" Do you think that saying might apply in this case? | |
| 17 July 2007 | |
| That's exactly what it is. And my client is pissed off very much for he helped the guy a lot. So any idea where I can erport it? | |
| 17 July 2007 | |
| erport it to the police first off. They will direct you where to go after that. | |
| 18 July 2007 | |
| Also remember that household insurance policies may have some form of Identity Theft coverage to offset expenses incurred. | |
Bottom Line (talk|edits) said: | 19 July 2007 |
| Since this is a trucking company, I wonder if the Interstate Commerce Commission (I believe they regulate the trucking industry) would be interested in this? | |
