Any of you encountered fraud when trying to electronically file your taxes this year? Mine was a notice that because of duplicate SSN's, I couldn't file electronically.
Scammers are taking stolen SS numbers, filing returns with refunds, which then block the real taxpayers efforts when they try to file a legitimate return.
Untold billions have be scammed from govt thru Medicare fraud. Billions more are being stolen from a tax system that can't protect itself. Change to consumption-based taxation, and at least the latter part of that is solved while also eliminating the billions it cost just to run the despicable IRS.
Victim of tax ID theft? What to do next
Your letter from the Internal Revenue Service says a bogus tax return was already filed in your name. Or your electronically filed return bounces back because fake returns are already on file with your Social Security number (SSN). Surprise: You may be the victim of identity theft. What can you do?
First, recognize how easy it is to hijack your personal data. "To file a tax return electronically, all someone needs is a name, date of birth and a Social Security number," writes technology editor Matt Hunter with NBC News. "The IRS accepts tax filings as soon as Jan. 1, but employers aren't required to submit correct employment information to the agency until March, by which time roughly half of all refunds have been paid."
Hunter further cites a fraud specialist as saying, "An imaginative crook in possession of the three basic items of a person's identity could make up fake … information and submit it and get the money within 30 days."
If the IRS suspects you fell victim to ID theft, the agency mails – and not emails – you a letter with one of these codes in the upper-right corner near the date: Form 5071C, Letter 12C; Letter 148A or CP 148B; or Letter 4883C.
We've written about identifying a fraudster posing as the IRS. Never hesitate to contact your advisor or accountant about any communication you receive that generates questions or concerns, with or without the above codes.
You can take preventive actions to minimize the possibility of someone stealing your identity. First, let's go over what to do if the crime already happened.
Notify your professional advisors immediately. This includes your investment or financial advisor, as well as your tax preparer. Do not email a copy of the notice you received. Instead, upload it to your advisor's secure client portal or otherwise use a secure method for sharing the information.
Respond to the IRS, immediately and persistently. Respond promptly according to the directions on the notice. Phoning the IRS may take time; keep trying to get through.
Complete IRS Form 14039, "Identity Theft Affidavit." Continue to work with your tax preparer to file your returns and pay your taxes due, using paper if necessary.
Take immediate steps to minimize damage. Follow the procedure on the Federal Trade Commission (FTC) website, "Immediate Steps to Repair Identity Theft," which includes but is not limited to:
1. Contacting one of the three major credit bureaus to set up a fraud alert on your records. (The first company you contact supposedly alerts the other two. Confirm this with the agent.)
Equifax, (866) 349-5191 FREE;
Experian, (888) 397-3742 FREE;
TransUnion, (800) 680-7289 FREE.
2. Requesting and reviewing copies of your free annual credit reports from each of these companies and telling them that you placed an initial fraud alert.
3. Filing an identity theft complaint/affidavit with the FTC and filing a report with your local police (include your FTC theft affidavit).
Follow up to resolve any lingering issues. For guidance, see the FTC's "Repairing Identity Theft," and follow the steps for "What to Do Next."
To reduce your risk of becoming a victim of ID theft, don't carry your Social Security card or any document with your SSN on it. Don't give any business or agency your SSN just because they ask.
Annually check your Social Security earnings report for incorrect earnings data and your credit report for bogus accounts; and give out no personal information on the phone, through the mail or via the Internet unless you initiated the contact or you're certain about who asks for the information.
Among other steps:
• Protect your personal computers with firewalls, antivirus software or spam filters (preferably all three). Keep operating systems patched and up to date on current releases.
• Use secure passwords. Generally, longer passwords offer the strongest protection.
• Protect personal financial information on your home computer. Documents containing lists of passwords also need protecting.
• Don't respond to out-of-the-blue calls, email, faxes or texts claiming to be from the IRS. The IRS always begins correspondence with a postal letter.
It would make so much sense to go to a national sales tax similar to what is spelled out in fairtax.org.
I had the same thing happen - a big pain in the ass.............
It would make so much sense to go to a national sales tax similar to what is spelled out in fairtax.org.
Progressive's hate that because it falls disproportionately on lower income people.
I like paper, but they did not even mail out any booklets this year. I will just download the forms and celebrate tax day at my post office, which seems to have a lot of people like me, they even play some southern music.
It would make so much sense to go to a national sales tax similar to what is spelled out in fairtax.org.
Progressive's hate that because it falls disproportionately on lower income people.
For every tax scheme and system, someone will feel they are disproportionately punished.
The Fair Tax tries to solve this by pre-bating the cost of the tax on essentials to all citizens. Rather like govt estimating a figure that they let you use as a deduction per dependent, but paid upfront to each legal citizen. Then everyone who buys anything is taxed, meaning illegals or criminals face taxation they currently avoid under an income-based system, and legal citizens are treated properly.
For every tax scheme and system, someone will feel they are disproportionately punished.
The Fair Tax tries to solve this by pre-bating the cost of the tax on essentials to all citizens. Rather like govt estimating a figure that they let you use as a deduction per dependent, but paid upfront to each legal citizen. Then everyone who buys anything is taxed, meaning illegals or criminals face taxation they currently avoid under an income-based system, and legal citizens are treated properly.
Exactly. I worked for a company that did landscaping and most all the guys in the field were illegals. They did not pay one cent federal or state tax. They had fake ID's and SS #'s . One day a man came into the office with a w-2 that he received from the company yet he never worked there. To my knowledge nothing ever happened to the company.
The fair tax will pay rebates up to the tax for 31k of purchases. So you do not pay a single penny until you purchase more than 31k if you are an American citizen. If the rate were to be 20% you would get $6200 a year $517 every month which would pay all the taxes for $2,585 of spending a month
Speaker of the House John Boehner has a tax reform plan, so that people could do their taxes on two sheets of paper. I like that idea.
http://www.speaker.gov/general/five-points-roadmap-fixing-our-tax-code
The average taxpayer has to spend 13 hours preparing their returns. It’s not hard to figure out why. For example, did you know that there are currently 15 different education tax breaks with a corresponding 90 pages of IRS instructions? While big companies have the resources to navigate the code and push for loopholes, middle-class families remain overtaxed.
•Lower the corporate tax rate.
•Modernize the taxation of companies doing business abroad.
• Lower and simplify the rates paid by individuals and pass-through businesses.
• Simplify the tax code for families and businesses, so families can do their own taxes and businesses can plan for the future, and neither can wonder if someone else is getting a better deal.
•Simplify the maze of credits and deductions families use for things like education and retirement planning.
•Reform the IRS to make it more accountable to taxpayers and less susceptible to bureaucratic abuse.
On February 26, 2014, Ways & Means Committee Chairman Dave Camp (R-MI) released a discussion draft for tax reform that addresses these priorities. The nonpartisan Joint Committee on Taxation estimates that Chairman Camp’s proposal would create 1.8 million private-sector jobs over the next 10 years, and his plan sets the stage for further action on reform. In addition, the House has acted on:
•H.R. 3393, which would permanently reform and consolidate the maze of high education tax incentives into a single American Opportunity Tax Credit.
•H.R. 4457, which would permanently allow small businesses to deduct the up-front cost of purchasing new equipment and property.
•H.R. 4718, which would make permanent 50 percent bonus depreciation.
•H.R. 4719, which would make permanent and simplify charitable provisions of the tax code.
These bills are among the dozens of House-passed initiatives stuck in the Democratic-run Senate.
(that is from his five point's plan)
http://www.speaker.gov/general/complete-five-points-roadmap?Source=GovD
REMARKS: We really need to know what our reps are doing in Congress. We need to know and they need to represent us.
