Legal Question in Tax Law in New Jersey

Hello, my husband had an issue with identity theft. This caused a problem with the I.R.S. The person is working with his name and social but of course does not pay taxes. We filed jointly. We submitted proof that he is not this person they still took the refund of 5777.00 They said its under investigation. Why is he getting punished for someone else committing a crime?Is there anything we can do? Is this illegal ? We still have a refund to do,just dont want the same thing to happen. PLEASE HELP...


Asked on 9/21/12, 4:15 am

1 Answer from Attorneys
Ronald Cappuccio Ronald J. Cappuccio, J.D., LL.M.(Tax)

Unfortunately, you are stuck! the IRS will typically send you a letter audit indicating that certain 1099s and other income was not reported on your 1040. You then have to fight the identity theft issue. This can take upwards to a year and sometimes requires going to US Tax Court. In the meantime, I suggest you make sure your anticipated refund is lower. You and your husband should increase the exemptions for your W � 4 for the rest of the year. Most likely this will happen again next year.

I hope this helps!

Ron Cappuccio

www.TaxEsq.com

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Answered on 9/21/12, 5:33 am


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