Wrong SS number on return.

[TaxmannEA]

This is one that I haven't dealt with for a long time. Client filed 2020 return using the SS# from a W-2 that he had. The return was e-filed and accepted by IRS. He just received an identity verification letter which I have instructed him to respond toby phone at once. 

I have 2 questions about this. First, as the SS# used on the return was not even remotely close to his number, why did IRS accept the return ? Usually this would cause a reject on filing, but it didn't. This makes me nervous about the possibility of TP using 2 different numbers, or someone using his info to get a number.

Second, do I file a 1040X to zero out the original return and then file under the correct number, or is there another way to deal with this ? 

[Possi]

I am surprised it was accepted as well. I would wait and see how that phone call goes before I take the next step. 

It doesn't seem right to amend for a tax ID number, so we will wait for some others to respond. 

 

[ILLMAS]

Super weird, but how was it traced back to him if the SS# used doesn't even belong to him?  

[Possi]

18 minutes ago, ILLMAS said:

Super weird, but how was it traced back to him if the SS# used doesn't even belong to him?  

That's true. He probably entered the FEIN for the employer. Maybe it did indeed reject and the DIY software didn't notify him. That's what I'm thinking. 

I'd look at that letter and make sure it's legitimate, then proceed from there. 

Still, you wouldn't amend for a tax ID number, would you? It never should have flown. As far as the IRS knows, the tax return doesn't belong to anyone, right?

[JohnH]

Has he actually shown you the letter from the IRS?  I'd take a very careful look to try and determine if it's legitimate.  (Before he calls them).  Would also be wise to have him check his transcript online before calling them if possible..

 

[PapaJoe]

Two questions: why didn't he contact the employer if he knew the SSN was incorrect on his W-2 and why did he file a tax return using an SSN he know was wrong?

[TaxmannEA]

He came to us for tax prep. He had filed on his own for 2019 when his wife died. The file wasn't available for roll over, so the preparer used the information from the W-2. He hadn't noticed the SS# in the W-2 until the latter came from Austin. The address, DOB, etc are all accurate. Just the SS# is wrong. We filed the return and it was accepted immediately.  

I've advised the client to contact the employer. They are out of state, so don't know how that will go. 

[Lee B]

14 minutes ago, PapaJoe said:

Two questions: why didn't he contact the employer if he knew the SSN was incorrect on his W-2 and why did he file a tax return using an SSN he know was wrong?

Because people don't really look at things, they just assume it's right. Back in 2012, while changing payroll programs I transposed 2 digits in a longtime client's SSN

which ended up being filed with the SSA incorrectly for 2 years before I caught it. My client never noticed. At that time I was using ATX and the correct SSN carried

forward in my tax program so it wasn't a tax return issue. My client never received any letters either.

[ILLMAS]

^^ Same thing happened to one of my clients, the payroll company transposed the daughters middle two numbers, the IRS sent a letter to the real SS# which in turned called my client and left a threating voicemail.  My client asked me to call the lady and she was accusing my clients daughter of fraud, identity theft and the that local authorities were notified etc...  that we were going hear from her lawyer, once we got to the bottom of it, the payroll company corrected the W-2 and lady was happy it was just an error and not identify theft.

[TaxmannEA]

This isn't just transposing numbers. The SS# on the W-2 is nowhere near the TP,s or his late wife.

[Pacun]

Maybe the W-2 he brought was from his sibling and when his sibling paper filed, the IRS knew only one is legit.

I always insist for my new clients to show me their SS card, not only for situations like this, but also because I need to match my filing with what is listed on the SS card.