Bogus W-2G's reported to IRS under wife's ssn

[mschultz11]

I recently received a "mail examination" audit notice from the IRS. This is for the tax year 2007. It contained a discrepancies the IRS has from what we reported as income. There are over 60 W-2G's that 2 casinos in Indiana reported income under my wife's SSN. Over 100,000 of gambling income that is not ours. We've never even heard of the Casinos, much less been there.

Looking for advice. Has anybody ever had anything like this happen? Other than sending the "examination response form" back with a "I do NOT agree" checked off, should I first consult with a tax lawyer?

I'm really at a loss on the best course of action?

 

[LdiJ]

I recently received a "mail examination" audit notice from the IRS. This is for the tax year 2007. It contained a discrepancies the IRS has from what we reported as income. There are over 60 W-2G's that 2 casinos in Indiana reported income under my wife's SSN. Over 100,000 of gambling income that is not ours. We've never even heard of the Casinos, much less been there.

Looking for advice. Has anybody ever had anything like this happen? Other than sending the "examination response form" back with a "I do NOT agree" checked off, should I first consult with a tax lawyer?

I'm really at a loss on the best course of action?

If you are absolutely certain that your wife isn't gambling behind your back, then she is the victim of identity theft. Your first step is to report the situation to the police.

Then you need to write a letter to the IRS and include a copy of the police report.

 

[cyjeff]

If you are absolutely certain that your wife isn't gambling behind your back, then she is the victim of identity theft. Your first step is to report the situation to the police.

Then you need to write a letter to the IRS and include a copy of the police report.

I agree completely.

Assuming your wife isn't a closet gambler, it sounds like your wife's SS number is being passed around by the illegals at the casino.

I would also contact the casino and make them aware of the situation. Demand that they take any workers on staff that are using your wife's SSN off the tax roles immediately.

 

[mschultz11]

I am absolutely positive my wife is not a gambler. We are a victim here. We live in MN, the casinos are in Indiana. If I start with the police, should I be contacting the local police here in MN, or the police in Indiana?

We also checked her credit report, which is completely clean, so we know they haven't used the ssn for getting any kind of credit.

I guess my biggest question right now is, how to handle this with the IRS? I could take awhile to get a police report. The IRS took almost 2 years to find this, but require a response within 2 weeks.

 

[cyjeff]

From here... Identity Theft and Your Tax Records

If you receive a notice or letter in the mail from the IRS that leads you to believe someone may have used your Social Security number fraudulently, please respond immediately to the name, address, and/or number printed on the IRS notice.

Be alert to possible identity theft if the IRS issued notice or letter:

• states more than one tax return was filed for you, or
• indicates you received wages from an employer unknown to you.

An identity thief might also use your Social Security number to file a tax return in order to receive a refund. If the thief files the tax return before you do, the IRS will believe you already filed and received your refund if eligible.

If your Social Security number is stolen, it may be used by another individual to get a job. That person’s employer would report income earned to the IRS using your Social Security number, making it appear that you did not report all of your income on your tax return.

If you have previously been in contact with the IRS and have not achieved a resolution, please contact the IRS Identity Protection Specialized Unit, toll-free at 1-800-908-4490.

What do I do if I have not been contacted by IRS for a tax issue but believe I am a victim of identity theft?

If your tax records are not currently affected by identity theft, but you believe you may be at risk due to a lost/stolen purse or wallet, questionable credit card activity, credit report, or other activity, you need to provide the IRS with proof of your identity.

You should submit a copy, not the original documents, of your valid Federal or State issued identification, such as a social security card, driver's license, or passport, etc, along with a copy of a police report or Federal Trade Commission Identity Theft Affidavit. If the FTC Affidavit is not notarized, a witness (non-relative) must sign it.

Please send these documents using one of the following options:

Mailing address:
Internal Revenue Service
P.O. Box 9039
Andover, MA 01810-0939

FAX: Note that this is not a toll-free fax number
1-978-247-9965

For your convenience, Form 14026 is available as a cover sheet for submitting your documentation.

You may also contact the IRS Identity Protection Specialized Unit toll-free 1-800-908-4490 for guidance.
Hours of Operation: Monday – Friday, 8:00 a.m. – 8:00 p.m. your local time (Alaska & Hawaii follow Pacific Time).

 

[LdiJ]

I am absolutely positive my wife is not a gambler. We are a victim here. We live in MN, the casinos are in Indiana. If I start with the police, should I be contacting the local police here in MN, or the police in Indiana?

We also checked her credit report, which is completely clean, so we know they haven't used the ssn for getting any kind of credit.

I guess my biggest question right now is, how to handle this with the IRS? I could take awhile to get a police report. The IRS took almost 2 years to find this, but require a response within 2 weeks.

I would recommend using a local tax professional who is experienced in dealing with IRS problems (generally an office that is open all year long) to assist you with this.

They will know the "buzz words" to use to ensure that the IRS takes this seriously. They can also call the IRS for you (or your can yourself) to get an extension of time to respond.

Also, W2Gs have dates and times on them. You can ask the IRS for an income transcript for your wife for the year involved, which will give you all of the info that appears on the W2G. It will be helpful if you can establish that your wife was in MN for as many of those dates as possible...for both the police, and the IRS.

Go to your local police.

 

[mschultz11]

Thank you for all the helpful information/advice.