Help.........What can I do about the IRS?

Question

They are saying 7413 was earned under my social security # in 2005 and not claimed on my 2006 return, which I didn't make.

Answer 1

I almost agree with Ms. Angel.  I would file the police report OR file with the FTC. For the problem at hand, doing both would be overkill.  Respond in writing to the IRS.  A phone call will not work.  Send them a copy of the police report, a photocopy of a photo ID (your drivers license if at all possible, and send a good copy.  Drivers licenses do not photocopy well.) and a statement that you did not work at whichever of the listed employers you did not work at.  Do not waste your time contacting the employers.  IRS will do that if you respond the way I have suggested.  They are more likely to get a response.

Your question is vague enough to allow for the possibility that the problem is that your employer overreported your wages.  If that is what happened, contact the employer.  If it's just a typo, have them send you a copy of the W-2c and remind them to send SSA its copy.

Answer 2

The letter IRS sent you shows you who reported the income under your social security.  You need to prove to IRS the income is not yours.  How you do that is going to the place of employment and finding out why it was reported under your social security number.  IF someone is using your social security and you feel you are  a victim of identity theft then go to your local police department and the also report it to the Federal Trade Commission.  

IRS is going by what was reported to them they have not idea if it is you that worked at a certain place or not, it is all up to you to prove it isn't your earnings. Or if it is your you need to pay the amount IRS is now saying you owe.  

By the way any earning earned From January 1, 2005 thru Dec 31, 2005 would have been reported on your Federal Tax return for 2005.  Any income reported during the year of 2006 is 2006 return.

Answer 3

Go to a tax lawyer or CPA and have them do an independent audit of your tax records.  Be honest about all your earnings......this way you can have a separate source prove that you have been wronged by the IRS.

Answer 4

You might want them to double check the SSN they are asking about.  They sent me a letter stating that I made $9,000 interest on an account that I did not and I had to show them the W-9 form to prove they made the error and not me.  They sent a letter back thanking me for my input and all was OK like it was me in the wrong the whole time.  They do make key entry errors so check into it.

Answer 5

There should be a number on the letter you got - call them.  It's possible someone else worked using your social security number - this could just be an error with digits transposed or something, or could be identity theft.

Answer 6

Before you spend all the money for a lawyer or accountant, you need to make some effort to settle the matter by working directly with the IRS.  The problem you face is that once the IRS asserts that you earned income, it's up to YOU to prove that you didn't, even though the error obviously belongs to the IRS.

The first thing I would do is read their notice to you carefully.  It will have a number to call and an address to write to on it.  First, call that number and explain as clearly as you can that you did not earn the $7413 in 2005, and there must be an error.  Don't get angry; act confused and ask for help.  After that call, do what they suggest, BUT ALSO write a detailed letter to them describing how it was impossible for you to have earned that income because--well, you will have to fill in the blank here.  Make it a polite but very specific letter, and conclude by asking directly for the IRS to resolve the matter ASAP.  Of course you want to keep a copy of that letter.  

Use the words "IRS clerical error" in your letter.  That phrase has some meaning to the folks at the IRS.  It will help clarify that this is not a disagreement about whether you owed certain taxes.  You're not trying to argue that certain income was tax exempt; you're pointing out that you never earned the income.  

Then call the Office of the Taxpayer Advocate at 877-777-4778 .  It's their job to deal with situations like this, where there is a clerical error resulting in an increase in your tax liability.  When you reach a human being, tell that person you've already written the first letter to the IRS.  You can also fill out a Form 911 (available at irs.gov) to request assistance from the Taxpayer Advocate.