Discovering that your IRS transcript shows earnings from an employer you never worked for can be a daunting and stressful experience. Not only does it raise concerns about potential fraud, but it can also have serious consequences on your taxes and overall financial well-being. In this situation, it is important to take immediate action and address the issue with the IRS before it escalates further.
Understanding the Situation
Before diving into the steps you should take, it is important to understand the situation at hand. In this scenario, it seems that someone has fraudulently reported earnings under your name and Social Security number to the IRS. This can happen for various reasons, such as identity theft or someone intentionally trying to deceive the IRS. Regardless of the cause, it is crucial to address this issue as soon as possible.
Reporting the Unauthorized Earnings
The first step you took, disputing the earnings with the Social Security office, was the right move. However, it is also important to report these unauthorized earnings directly to the IRS. It is possible that the Social Security office may have already reported it, but it is better to be proactive and ensure that the IRS is aware of the situation.
You can report the unauthorized earnings by calling the IRS at 1-800-829-1040. This number is specifically for individuals to report tax-related fraud or identity theft. It is important to have all the necessary information, such as your name, Social Security number, and the fraudulent earnings reported, ready when you call. The IRS representative will guide you through the process and may also ask you to fill out Form 14039, Identity Theft Affidavit.
The Importance of Seeking Professional Help
While reporting the unauthorized earnings is an important step, it is also crucial to seek professional help from a tax advisor. They can assess the situation and provide you with guidance on how to proceed. They can also help you navigate any potential issues that may arise as a result of the fraudulent earnings, such as tax implications or legal proceedings.
Be Proactive and Stay Informed
In situations like these, it is crucial to be proactive and stay informed. Keep an eye on your IRS transcript and any other financial documents to ensure that there are no further unauthorized earnings reported. It is also important to regularly check your credit report to monitor for any suspicious activities. Additionally, staying informed about tax laws and regulations can help you protect yourself from potential fraud in the future.
In conclusion, discovering unauthorized earnings reported to the IRS can be a stressful and concerning experience. However, by taking immediate action, reporting the earnings directly to the IRS, and seeking professional help, you can protect yourself and your finances. Remember to be proactive, stay informed, and seek help from a tax advisor if needed.