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tmarquez
03-29-2011, 09:59 AM
My stepson received a letter from the IRS saying he owes over $2000 in taxes for income he didn't report.

The thing is, he didn't earn the income. He is a college student who has only worked at 2 places in his life (the student union and the airport). They say he has a 1099 from a company in Oklahoma for $8600. He has never been outside the state of Florida.

Anyone have any experience with this? The letter syas he must file a petition in the US tax court. What can he provide that proves it wasn't him? Should we try to contact the company that says he worked for them?

We already checked his credit reports and there isn't anything funky on there.

Thank you!

GinnyEmma
03-29-2011, 10:05 AM
Wow, talk about stress! I'd provide documentation of his age and information about two jobs he has worked. Better yet, call and talk to them. They were exceedingly nice when I screwed up something a few years ago. Good luck!!

okeydokey
03-29-2011, 10:12 AM
Call the IRS directly and see what they need him to do. They are very helpful. Somehow it's probably a mix up with SS numbers.

tmarquez
03-29-2011, 10:15 AM
Do you know if I can call the IRS for him? He's pretty shy and not great at talking to people.

akcire
03-29-2011, 10:15 AM
My stepson received a letter from the IRS saying he owes over $2000 in taxes for income he didn't report.

The thing is, he didn't earn the income. He is a college student who has only worked at 2 places in his life (the student union and the airport). They say he has a 1099 from a company in Oklahoma for $8600. He has never been outside the state of Florida.

Anyone have any experience with this? The letter syas he must file a petition in the US tax court. What can he provide that proves it wasn't him? Should we try to contact the company that says he worked for them?

We already checked his credit reports and there isn't anything funky on there.

Thank you!

Sounds like it is either a mix up with social security numbers or it may actually be identity theft.

In addition to contacting the IRS to find out how to handle this, and I would be as blunt with them as you have been with us. He is a kid, he has never been to Oklahoma, he didn't earn this money, therefore he can't owe the tax.

I would also pull a credit report, and see if he has any activity that is not his activity. If he does have fraudulent activity then you need to work to resolve that issue additionally.

Good luck.

5forDiz
03-29-2011, 10:17 AM
I would also add to the excellent advice from GinnyEmma and other posters here, that he gets documentation from his college(high school too if necessary) of dates he attended and it doesn't hurt to give Social Security Administration a call because they may be able to research whether his SS# was used illegally ( probably it was just a mix up but you never know, these days personal data stealing is common )

idk how it works with calling IRS, whether or not he would actually have to speak to them directly or if you can as his representative.

Best wishes :)

Green Tea
03-29-2011, 10:20 AM
a 1099 would be for contract work, right? Did he do any computer programming, design etc. remotely?

Green Tea
03-29-2011, 10:21 AM
But if it isn't really him, I think it won't be as scary to clear up as a letter from the IRS sounds. As others said, explain and go from there.

tmarquez
03-29-2011, 10:27 AM
No, he never has.

a 1099 would be for contract work, right? Did he do any computer programming, design etc. remotely?

GinnyEmma
03-29-2011, 10:33 AM
Do you know if I can call the IRS for him? He's pretty shy and not great at talking to people.

Call, explain, and ask. The worst they can say us no. Inthat case you might be able to have him over and use speaker phone or conference call.

GinnyEmma
03-29-2011, 10:35 AM
Btw I was scared to pieces, and they were extremely kind and talked me through what I needed to do.

Brer Shay
03-29-2011, 10:40 AM
This happened to me while I was a college student (20 years ago). Indeed, someone else used my SSN. I lived in Maryland but had somehos earned $52,000 in Arizona. Definitely not me. Call the IRS, they will likely be pretty kind about it. You'll be reporting a fraud issue and they'll give you a case number, request documentation, etc.. It will take several months to sort out, but it will happen eventually. In my case, it wasn't until the following January that I got the refund I was expecting and that came after I got my congresswoman involved. As these cases have become more common, they are generally expedited more quickly.

dis-happy
03-29-2011, 10:46 AM
I'd also try contacting the company directly. If they look into it and find out it's a clerical error (ie. transposed SSN entered into their system) they can issue a corrected 1099 to the IRS from their end. It may speed up the process. GL!!!

Cheshire Figment
03-29-2011, 11:39 AM
One thing worries me about the original post. If his only option, at this time, is to petition the Tax Court, it is possible that he may have ignored previous letters and would actually be in trouble.

If it is just a routine correspondence which asks for additional payment and gives detail, it can be responded to in writing.

If it is not just the routine correspondence you may wish to find the location of the nearest Internal Revenue Service office and have him set up an appointment with a Revenue Officer; you will be able to accompany him to the appointment and the matter can be discussed in person.

Mike (CPA Retired)

cvjw
03-29-2011, 01:10 PM
My youngest son got a letter from the IRS stating that he didn't pay his taxes - we actually had paid his taxes, the IRS just deposited the payment into a different account. But, we just got a letter telling us that he didn't pay, with an envelope to mail the check in, and a number to call. I would also be worried about going to Tax Court - no where on my son's letter was this mentioned. All it took to clear up our situation was an hour on the phone with a really nice IRS agent. They figured out their mistake, and everything was fixed.

eliza61
03-29-2011, 01:20 PM
Do you know if I can call the IRS for him? He's pretty shy and not great at talking to people.

Tell him it really is a new "kinder and gentler" IRS. I have to say the last couple of times we've called the person has been polite and informative. They gave us suggestions and went over the procedure step by step.

Generally they will not talk to the person who is not the ss holder. the speaker phone suggestion is great.

Encourage him to call himself. YOu can be his support in case he doesn't understand a question.

ljcraw555
03-29-2011, 01:40 PM
Personally, I would call the IRS direct. I would not call the contact number in the letter, just in case it is a scam! These days, you never know! Good luck!

cglaura
03-29-2011, 02:21 PM
Did he have any debt or cc that was written off/charge off/canceled debt?

I believe the cc will 1099 you on that.

leight
03-29-2011, 03:22 PM
Does the letter give the name and address of the company in Oklahoma that he supposedly recieved the 1099 from? As well as contacting the IRS immediately- I would also contact the company and ask for a copy of said 1099-see what info they can provide on the employee listed on the 1099.

Bungle
03-29-2011, 03:29 PM
Did he have any debt or cc that was written off/charge off/canceled debt?

I believe the cc will 1099 you on that.

This 1099C.

Have the son call. It really is best for the person to call in whenever possible. They don't bite;)

TheRatPack
03-29-2011, 05:44 PM
We've dealt with something like this a couple of times. My husband would get a letter stating he didn't report income and it was for some company in Florida. We called the company in question and they said they had his social on file and gave us an address....it wasn't ours. Not really sure how the IRS worked it out, we contacted them and gave them all the information and told them it wasn't us and they took care of it.

Boardwalk Gal
03-29-2011, 05:55 PM
We had a similiar letter from IRS and we called and they were very nice and it was fixed. Have your son tell them the situation and what they would do is investigate further and hopefully upon the findings it will be resolved.

But if somehow, they still insist that they are right on, then the next best thing is to contact an IRS expert lawyer. It may be a painful process but it will prevent your son's credit and aggravation!!

Best wishes and hopefully it all a simple mistake and will be resolved!!!

Let us know here how it turned out!!;)

Floridagal23
03-29-2011, 06:57 PM
This happens more often than you think. I had a client with this problem when I worked at the tax clinic in law school.

It could be a mistake (employer messing up forms, employee putting down wrong ss number) or it could be ID theft (IE, someone uses a random social so they don't have to report their wages for tax purposes).

You should call the IRS and find out exactly what they need to prove that the funds don't belong to him. Maybe proof of employment elsewhere, proof of residency elsewhere, school attendance or enrollment records during that time period, etc.

If that doesn't work, reach out to your local taxpayer advocate (through the IRS) for assistance.

Disneylvr1971
03-29-2011, 07:21 PM
I just looked up on the IRS website that a 1099-C is for cancellation of debt. Be sure you call the IRS to discuss this. As one pp mentioned, there are a ton of scams out there, and don't use the number on the letter. DH is an accountant and has seen many "official" looking IRS letters which were a fraud. All they did was contact the IRS office and they cleared it up. Don't give any information out (especially Soc Sec #'s) to anyone until you call the IRS.
Good luck!

C.Ann
03-29-2011, 07:24 PM
Does he have (or had) a savings account anywhere? Was it a straight 1099 - or a 1099-INT (which would be an interest 1099)?

I think you have received good advice here - and hopefully the IRS are"nicer" than in days of old.. Personally I'm scared to death of the IRS :eek: - even though I have absolutely no reason to fear them.. Guess I've read too many newspaper articles and watched too many movies - LOL..:rotfl:

Hope it all works out well for your son.. Seems pretty clear that this was not your son - possibly someone just keyed in some wrong numbers or something..

Good luck! :goodvibes

EKW
03-30-2011, 12:17 AM
I would guess his name and SS# have been sold to an illegal immigrant. I just heard about a huge ring that has been doing this for years. Is he a student? School records should show that he has not been where the records say he's been.

I would try dealing with the IRS directly first. In my experience, they aren't the boogie men they're made out to be. They may be able to help you get this sorted quickly.

Call the SS office, too. Your son may need a new SS number!

tmarquez
03-30-2011, 09:45 AM
OP here with an update.

Apparently there was a letter prior to the one he brought to me. After he got the first one, he did call the IRS and explain. They had him FAX in a form saying his identity was stolen and he had to include his ID. He did this back in November. He called again in December and they told him it looks like they got his docs, but they were not processed yet. He just dropped it at that point.

We called back last night, he had to talk to them himself. They said they never got his docs back in November and had us FAX them in again. We will call back until they assure us they got them! They told him they didn't need any additional documents and that should take care of it. He will receive a letter saying the matter is closed.

Sounds too easy to me...but I guess we'll see.

If he ends up needing an attorney, I'd think it'd just be cheaper to pay the $ they say he owes.

dis-happy
03-30-2011, 10:32 AM
Good heavens, don't pay the money just because it's less than an attorney!

I'd keep a log/journal of all your contact with the IRS from this point forward. When they get the FAX make sure you notate whom you spoke with, day, time, etc.

I'd still contact the issuing 1099 company so they get your ds "off the books" so to speak. Whoever is connected with your ds' ssn could still be generating tax statements through them. It could also help clear up whether or not it was an accident or a true identity theft.

Kirby
03-30-2011, 03:22 PM
Good heavens, don't pay the money just because it's less than an attorney!

I'd keep a log/journal of all your contact with the IRS from this point forward. When they get the FAX make sure you notate whom you spoke with, day, time, etc.

I'd still contact the issuing 1099 company so they get your ds "off the books" so to speak. Whoever is connected with your ds' ssn could still be generating tax statements through them. It could also help clear up whether or not it was an accident or a true identity theft.
Definately document everything. I've had to deal with the IRS before and believe it or not, they do make mistakes. ;)

DisneyMomma81
03-30-2011, 03:31 PM
If your brother would like you to discuss his tax problems/questions with the IRS you need a Form 2848 (http://www.irs.gov/pub/irs-pdf/f2848.pdf) *2848s are my job ~ it's what I input Mon-Fri*

And the *instructions* (http://www.irs.gov/instructions/i2848/index.html)

Let me know if you have any ?s regarding the 2848 :)

seashoreCM
03-31-2011, 11:45 AM
Start naively and small. (changes made) Start with an explanation without doing research and not enclosing any documents other than the specific items they ask of (if you can get those for free). The explanation would consist of a letter stating that he never visited that outfit, never did work for that outfit, never earned the income, never received the income, etc. You can format the IRS letter the bam bam bam way like
* I never went to that city
* I never applied to that outfit
* I never worked for that outfit
etc.

The IRS should open a case. Their next letter should contain something more that their original computer generated letter and tax bill. If you get merely the same letter from them then you send a copy of your same letter back. Once you get "more information" which means they opened a case manually as opposed to let their computers send out another notice, your step two is to ask the IRS for the name of the source of the "income" supposedly not reported preferably a copy of the actual 1099 form with the name of the recipient/taxpayer.

I would hold off on actually calling the company. YOu can write a simple letter asking for their copy of the 1099. Then another letter stating that DsS did not work for them and they need to send a correction to the IRS. Send the same letter again a little later (don't sit down and compose a new letter) if you don't get a reply. No point spending lots of time and anytime minutes / long distance charges on the phone begging them to do anything because if they balk at correcting the situation, they will string you along.

I say it is safe to not hire a lawyer until after it goes to court and you go there by yourself in person and you lose anyway. And I say you can kibitz DsS all you want or need without being a lawyer yourself.

DsS should feel free to call again to clarify himself or add information or correct himself if he felt he botched up a conversation.

The Social Security Administration sends almost everybody an annual earnings report. If DsS gets a report with extra earnings as well as with missing earnings, then he should send in a dispute letter for that. If DsS does not get a report, to prevent a prolonged period that "his" report goes to some imposter, when you receive your earnings report you should think, "Where's his?" and tell him to inquire of the SSA to find his.

Even though you are dealing with the most powerful collection agency in the world, I think you can get away with missing deadlines while waiting for snail mail in lieu of using express mail and faxes, so long as they know that a dispute is well under way.

katesorad
03-31-2011, 02:25 PM
I know there have been plenty of great responses already, but I just wanted to chime in and say that I used to work at a McDonald's where many of the employees were illegally living and working in the US. They stole social security numbers and used them to work there. It could be the case. Check that out to make sure!

DisneyMomOK
03-31-2011, 03:45 PM
Good heavens, don't pay the money just because it's less than an attorney!

I'd keep a log/journal of all your contact with the IRS from this point forward. When they get the FAX make sure you notate whom you spoke with, day, time, etc.

I'd still contact the issuing 1099 company so they get your ds "off the books" so to speak. Whoever is connected with your ds' ssn could still be generating tax statements through them. It could also help clear up whether or not it was an accident or a true identity theft.

Excellent advice. Never pay debt that is not owed; there may be more unpaid taxes that have not made it through the system yet and once you accept responsibility for one incident, it is more difficult to prove innocence on others. I would be very concerned that this is not the end of your DS's misery. You have received some good tips, especially those that address documenting every conversation.

Good luck, but I believe the company involved needs to be told. They would not know that the ID is stolen, if the thief had both name and SSN (not just the SSN, which is "synthetic identity theft.")

Kirby
03-31-2011, 05:21 PM
I have found in dealing with the IRS to always use Certified Return Receipt/Signature Required. That way you have confirmation that your correspondence was received and on what day. This has saved us a couple times on penalties.