Rejected returns

[lindakay]

I've had 6 rejected returns so far this year with reject code 902, "SSN of primary taxpayer already used on a previously accepted return." These are all previous clients of mine and their SSNs are correct. Therefore, somebody got hold of their names and SSNs and is filing fraudulent returns using their info. Needless to say, I'm freaking out. The IRS says the average for this situation, i.e. an imposter filing a return with another person's info in order to get a huge refund, is 1%. Well, I'm a small business is a small town, and because I've only filed 30 returns so far this year, that makes my average 20%. I'm told that it's just the way it is nowadays, but I believe my percentage of rejects is far too much to be just coincidence. I don't know where the security breech is, but I'm doing all I can to investigate, which is why I'm posting this.

Has anybody else been having this problem??

Linda

[Jack from Ohio]

Paper file the returns and send the taxpayers to this site http://www.irs.gov/uac/Identity-Protection. Only the taxpayer involved can contact the IRS. There are instructions on those pages for who they are to call. From this point on, only the taxpayer involved and the IRS can do the necessary steps.

It will take a long time, and be quite a mess till they get finished.

Contact the IRS at the Identity Protection Specialized Unit, toll-free at 1-800-908-4490

[joanmcq]

Are you located in Florida? Florida is the epicenter of ID theft for the IRS. But all you can do is what KC said.

[norcalea]

Linda Kay I think your numbers are unusually high for the number of returns you have filed. I have filed about the same with no problems as of yet. Can you reach out to other preparers in town and find out if they are having the same problem?

[lindakay]

Yes, I've referred my 6 rejected clients to the ID theft unit and they have all reported the incidents, and I have helped them through the process of preparing Form 14039 and sending it with copies of ID and their paper return. I really don't want to have to do this for 20% of the rest of my clients. The worst part is informing them of what happened. I get mixed reactions, some of them even crying and shaking.

But what mostly has me concerned is if somebody got into my data, they still have it and I don't know what they're going to do with it. I also am wondering if I should take new clients, because I may be putting them in danger of ID theft. I just don't know. The clients it has already happened to will get the special 6-digit IP code so they can e-file next year, but who knows what other havoc a crook could cause with the info they already have.

[lindakay]

norcalea, that's a good idea. That would help me narrow down the possibilities of where this is coming from. I'll make some phone calls around town tomorrow.

[mcb39]

I am having a massive mess with one that got compromised through both IRS and WI. WI sent them a bill for $5,856 because the return that we filed did not agree with the one that was filed previously. On the phone most of the morning with both the IRS and WI. They were perfectly willing to talk to me about the situation and how to handle it. I already had the 14039 filled out for the client and wanted to be sure that we attached everything they wanted; which is basically EVERYTHING. So much time wasted over someone's greed.

On the other side of the page. I just received an ACK for a client who was compromised last year. The IRS provided him with a PIN which marked his return as a possible target, so if someone filed it without that PIN, it shouldn't have gone through. Huge relief over this one.

[lindakay]

I had one 2 years ago. It took 6 months to resolve and he got his refund (btw the crook got a refund as well). The IRS issued him the 6-digit IP (Identity Protection) PIN which I have used to file his 2012 and 2013 tax returns, and both were accepted. So the PIN thing works, but only in retrospect, so anyone who has not been previously violated doesn't have the PIN and needs to go through the 6-month process of getting it resolved while the crook who stole his identity spends whatever money he managed to get out of the IRS by using his SSN. A crook who snags lots of numbers gets lots of big refunds, but of course with the PIN system, they can only use each number one year (that is, unless the person whose number it is doesn't file a return). It appears to be a lucrative business. They snag personal info somehow (which isn't really hard to snag I don't think) and they make up fake W-2s, and in a month or so they've managed to get all the money they'll need to live well the remainder of the year. If we were crooked we could do the same thing!

Marilyn, your story about the WI return does sound like a mess. I'm wondering if some of my rejects this year will end up messy like that. I've wasted quite a bit of time so far over other peoples' greed, and I'm thinking this is just the tip of the iceberg for me. Just had my 7th reject a couple hours ago.