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Thoughts on Tax & Accounting
from Chris Tone, Your CPA in Denver's Capitol Hill
June 2015
Tax Return Fraud: Where To Turn?

Tax refund fraud is expected to soar again in 2015 with numbers increasing to $21 billion by 2016, from just 6.5 billion two years ago, according to the Internal Revenue Service.
 
What do you do if this happens to you? Does the idea of trying to figure out what is the next step stop you in your tracks? What should your first step be? 
 
If you as my client receive one of the following items please contact me as soon as possible:
  • A return is rejected and the IRS reject code indicates the taxpayer’s SSN already has been used.
  • You notice activity on or receive IRS notices regarding a tax return after all the tax issues have been resolved, refund paid or account balances have been paid.
  • An IRS notice indicates you received wages from an employer unknown to you.
Once I receive your phone call I will move forward quickly in getting this issue resolved. First we need to make sure we have a power of attorney on file so that I can speak to an IRS representative. Of course my office will provide this document that will need to be completed by you. 
 
Once the document is received, I can then send it to the IRS so that I can speak on your behalf. I will keep in constant communication with you on any updates that the IRS provides until the issue is resolved. If at some point I feel that your SSN has been compromised, I would have you complete Form 14039, Identity Theft Affidavit. This form allows us to put an indicator on the client’s tax records for questionable activity. I would also ask you to contact one of the major credit bureaus to place a fraud alert on your records. It is imperative that returns are still filed and taxes are paid, even it if must be done by paper, while the case is researched.
 
As your tax preparer I realize that this issue can be scary and the process may seem arduous. However, part of my job is to make sure that you, as my client, are being taken care of and to make sure the issue is resolved.
 

Chris Tone, CPA
899 Logan Street, Suite 312
Denver, CO 80203

303-831-4473


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