Archived Thread

NFT: IRS advice/fraud?

DanMetroMan : 3/27/2017 7:48 pm

So as usual I have pretty bizarrely bad luck sometimes... anyway I get a letter in the mail from the IRS stating I owe 1,800 for underreported profits from investments with Fidelity from 2015... I don't have any investments with Fidelity and never have. I called Fidelity and they said even with me supplying my name and social they legally can't release any information at all including if "I" have an account with them

. I have no suspicious activity anywhere else, credit etc. my question is what would you guys recommend doing knowing that Fidelity says they can't release any information? Seems like a strange fraud to make 11,000, claim 10000+ under someone else's name. My other question/issue is wouldn't someone need far more than just my social to open up and "take" their eventual profits?

I mean I assume I can't just call up Fidelity give an address and social and that's enough? Or is it? What would you guys recommend doing? and yes I called the IRS but they were closed and of course I'm flipping out until I can speak to someone tomorrow. Thanks in advance

Did the IRS

pjcas18 : 3/27/2017 7:57 pm : link

letter have more information like a 1099 they received from Fidelity?

I have gotten letters in the past like this from the IRS, only they've been legit because I forgot some things like my stat refund (1099-G I think) or a forgot a 1099-DIV for some dividends.

I think they should have sent you a copy of the 1099 with the income reported.

Only thing I can think of is if you left a job and had a 401k or something with Fidelity.

Otherwise I'd think with a SSN and other identifiable information Fidelity would give you some information b/c they apparently sent you a 1099.

I'd see what the IRS says when you reach them, they should provide for you the documents they are basing this on, assuming your IRS letter isn't a fake.

Lots of IRS scams going around now

Stan in LA : 3/27/2017 7:59 pm : link

Don't call the number on the IRS letter. Look up the real number and confirm/call that. Ask them about the account and where it is. Maybe you have some free money sitting there.

DanMetroMan : 3/27/2017 8:03 pm : link

Yeah thanks. It's def legit because I actually got someone on the phone earlier when my wife contacted me about it (she got home before me) and they said it was related to "investments with fidelity" and more information would be on the letter so I got home and there are like 7 Fidelity things that closed in march 2015 and the "difference" declared was something like 800 dollars but not much additional information. I have to believe either somehow they are linking me with someone else social or something . I have to assume there is some way of proving I was not the one who opened that account. One would think Fidelity would need signatures or something right?

Thanks

DanMetroMan : 3/27/2017 8:05 pm : link

Guys I'll just assume the best until I hear otherwise tomorrow. Luckily we have an accountant on staff (again I'm asking bbi because I'm flipping out post work hours lol). I want to believe there is a way to prove that's not me or my investments. Trust me if I had 10,000 extra laying around I'd know about it lol

Once you get an account number from the IRS, Fidelity

Marty in Albany : 3/27/2017 8:05 pm : link

should be more helpful.

Dan - I wouldn't freak out. These letters are generated by computer

Watson : 3/27/2017 8:12 pm : link

no one has really looked at it. Could be just a SSN mis-entered that just happened to match yours. Something similar happened to a PT employee of mine several years ago.

Dan, if you never had a Fidelity

section125 : 3/27/2017 8:25 pm : link

Account, then there is nothing to worry about.

Really

DanMetroMan : 3/27/2017 8:29 pm : link

Ppreciate the advice guys. Hopefully it'll be a simple fix/explanation tomorrow.

Just a reminder: returns are not due till Tues, April 18

Marty in Albany : 3/27/2017 8:30 pm : link

On account of a DC holiday.

RE: Dan, if you never had a Fidelity

KeoweeFan : 3/27/2017 9:35 pm : link

In comment 13408569 section125 said:

Quote:

Account, then there is nothing to worry about.

CAUTION:
Unlike the normal US jurisprudence system, the IRS (and for example the US Coast Guard) legally operate under the assumption that you are guilty until YOU prove you are innocent.

Clearly you have to first establish whether the entity is really the IRS.

I experienced a similar, unfounded situation a few years back. My accountant (and a lawyer) advised me to NOT to get into any prolonged discussions MYSELF with the IRS. (Lawyers please jump in.)
I used a tax attorney to communicate with them. After almost a year, they realized it was a case of mistaken identity. No apology was issued (even though I was out countless man hours forwarding all my investment, checking and savings accounts for the last 5 years, not to mention the lawyer's fee).

If you DO talk to them simply state you have NO Fidelity account and clam up after that. Let them make the next move.

RE: RE: Dan, if you never had a Fidelity

DanMetroMan : 3/27/2017 9:37 pm : link

In comment 13408636 KeoweeFan said:

Quote:

In comment 13408569 section125 said:

Quote:

Account, then there is nothing to worry about.

CAUTION:
Unlike the normal US jurisprudence system, the IRS (and for example the US Coast Guard) legally operate under the assumption that you are guilty until YOU prove you are innocent.

Clearly you have to first establish whether the entity is really the IRS.

I experienced a similar, unfounded situation a few years back. My accountant (and a lawyer) advised me to NOT to get into any prolonged discussions MYSELF with the IRS. (Lawyers please jump in.)
I used a tax attorney to communicate with them. After almost a year, they realized it was a case of mistaken identity. No apology was issued (even though I was out countless man hours forwarding all my investment, checking and savings accounts for the last 5 years, not to mention the lawyer's fee).

If you DO talk to them simply state you have NO Fidelity account and clam up after that. Let them make the next move.

Thanks for the advice

IRS help

Searcher : 3/27/2017 11:11 pm : link

If you go to your local IRS office with proper ID, you can ask them to print out for you all the income that was reported under your social security number for that tax year. That would show you the 1099 Fidelity sent which would have the amount, the social security number, the name, and the address of the person who received the money.

RE: IRS help

DanMetroMan : 3/27/2017 11:13 pm : link

In comment 13408684 Searcher said:

Quote:

Searched thanks for that advice. I'll do that

RE: Lots of IRS scams going around now

I Love Clams Casino : 3/28/2017 7:57 am : link

In comment 13408540 Stan in LA said:

Quote:

Don't call the number on the IRS letter. Look up the real number and confirm/call that. Ask them about the account and where it is. Maybe you have some free money sitting there.

BINGO!

I think you are being scammed

Just tell them to bogger off

Beer Man : 3/28/2017 9:45 am : link

and that the US Constitution does not require you to pay taxes.

So what happened?

Stan in LA : 3/28/2017 1:36 pm : link

Turned

DanMetroMan : 3/28/2017 1:46 pm : link

out this was an existing account from when I was a minor. At the time (2014) he did give my brother and I some money (not a huge sum) but never noted where it came from. The accountant at my job explained that the IRS bills you at the highest possible rate on investments if you don't supply the 1099 (which I obviously did not since I didn't know it existed). He said if I get a copy of the 1099 from Fidelity (which hasn't been so easy since though I am 35 years old this account apparently was set up in a way that I'm still somehow considered a minor?). The accountant says once I have the 1099 they can adjust the bill based on some sort of rate of sale or something? I know absolutely nothing about investments/taxes and I probably should.

21 years later, the IRS decides to send you

PhiPsi125 : 3/28/2017 1:52 pm : link

a nasty-gram on small amount of money you received through Fidelity when you were a minor? What a hassle.

Lord, the IRS sucks.

Ugh, totally misread your post!

PhiPsi125 : 3/28/2017 1:53 pm : link

Still is a hassle.

And the IRS still sucks!

I think what you're looking for is your cost basis, which when

Marty in Albany : 3/28/2017 2:03 pm : link

subtracted from the sales price will give your taxable amount. In your case, it was a gift. So your cost basis might be the fair market value of the stock at the time it was given to you rather than the actual purchase price.

CPAs please feel free to chime in as I am less than certain I'm being accurate.