IRS Fraud

I think it is time to talk to an attorney who is well versed in dealing with the IRS. There are many that advertise on TV that they can help with back taxes and other types of IRS issues. Have her call one of them and do their free initial appointment. They can tell her the best options.

We had some huge issues with the IRS and getting any answers for what was happening. Your friend needs to find an IRS office and ask for an advocate. The advocate will do all the leg work for her, and they will know how to navigate the system. Seriously, have her go today.

Doesn't she have copies of her tax records? I have six years worth on disk and three on paper. We just refinanced and our paper records were all the bank needed. We did sign a release that they could contact the IRS to verify but so far as we know they never did.

That is really all I have, give the bank copies of her returns that she filed. Proceed from there.

I would go to a tax advocate, they have experience in dealing with IRS problems and know how to navigate the systems. She shouldn't have to deal with this on her own.

Just an fyi: we just bought a new house in June and even though you submit copies of your tax return-the mortgage co. will still request your tax return directly from the IRS. We had to sign an authorization.

To answer your question L....I would get a lawyer.

This is terrible for your friend, but it makes me wonder what is taking so long.

I live in California and went to H&R Block, like I'd always done. My tax guy actually came to my office the next day and told me that he couldn't complete the filing because someone had already filed using my son as a dependent. It was, of course, my ex-husband. I was furious. I contacted the IRS right away and they told me the forms I needed to complete. They asked me to get a letter from my son's school stating that he had always attended school there as my husband didn't even live in the same city. I also provided papers provided to me by the county child support enforcement division that clearly named my ex-huisband as the non-custodial parent.

The woman I talked to at the IRS was very nice to me and she said that if everything I had told her was true, I would get my refund, but it could take up to a year to get it straightened out.

I sent everything by certifified mail for both Federal and State taxes. I was shocked when 4 weeks later, my refund was automatically deposited into my bank account. I had obviously proved that I was the one who had the legal right to claim my son. They sent me my money and then went after my ex-husband. He had to pay them back, plus fines and interest, AND, he was not able to even file for earned income credit for 10 years whether my son ever went to live with him or not.

So, I know things can be more complicated if a person has passed away, but she is the one who had the legal right to the refund. That's not hard to prove. It could be that they are going over all her forms in greater detail. I had just a simple return, no itemizing...nothing complicated. Your friend isn't the one who committed fraud so most of the investigating should be done with regards to the other person who did.

Tell your friend to hang in there. I believe that things will get straightened out. Tell her to keep trying with the IRS until she finds someone more helpful. I was so lucky to get someone awesome right away.

Best wishes.

I'm not sure what the problem is...we have 10 years of tax paper records on file and just as many on our removable hard drive. The paper records should be accepted by the financial institution.

If not - then I would go directly to the IRS office and sit and wait for someone and get to the bottom of it.

http://www.irs.gov/localcontacts/article/0,,id=98259,00.html

The person who used her husband's social can be easily tracked if they gave an account number for direct deposit. If it's enough for the IRS to go over, they will do a stake out on the PO Box location that the filer supplied.

I'm sorry for your friends loss. And I'm sorry for the mess that is around her right now. My suggestion is to have her go to the IRS office and TALK to them in person - bring all of the files, letters, etc. she has and get to the bottom of it.

I would talk to the lender who is telling her there is a problem and have them give a list of the problems with ANY back up/evidence they have and bring that with her to the IRS office as well.

GOOD LUCK TO HER!

She needs an attorney.

A friend of a friend etc had this happen to her, though not the loss. Someone had claimed her kids as dependants so they flagged her return until it was straightened out. It took about 4 months once she proved everything. The bank wanted to verify with the IRS that taxes were filed with the correct amounts and that nothing was due since the IRS can place a lein on property. Banks do not want to lose their investment to the IRS. The family got a lawyer but an advocate is definitely a good route to go. They can help and may be able to get something showing that there is a fraud case in the works so your friend can show the bank that taxes were filed and paid. As for tracing the person through the account used for direct deposit, not necessarily easy. If the account was fraudulently opened using a fake name, they may not be able to trace. Even though there are strict rules rgarding ID with opening accounts, you never know if the person is using a false address and fake ID.

What about contacting a consumer advocate through a local news station? Something similar happened here, and they were able to help the woman get her problem straightened out.