Social Security questions about losing benefits are common. What’s not as typical is people having their benefits taken away because of problems with the IRS.
Unfortunately, that’s exactly what’s happening to some beneficiaries. The IRS tells the Social Security Administration that they’ve claimed income so their award is reduced or taken away completely. The problem is that these people haven’t actually been earning any extra money—they are victims of identity theft.
Identity Theft and Annoying Bureaucracy
People who experience this issue not only have to deal with the frightening prospect that their identity has been stolen, they have to figure out how to communicate with two giant bureaucracies in the IRS and the SSA. It can be a big pain to deal with, so your best bet is to talk to your Social Security Disability lawyer for help.
The first thing you need to know is that the SSA can’t solve your problem—at least not immediately. You need to straighten things out with the IRS first. This can be complicated and time-consuming, but if you sign IRS form 2848 for your lawyer, they’ll be able to deal with the IRS for you.
The IRS’s web and phone-based request systems can only send tax transcripts to the address on the form so a simple request won’t cut it. Technically, there’s a specific form that you can fill out for just such a situation (4506T), but as a Social Security Disability attorney who’s helped clients with this kind of problem, I can tell you flat out that it doesn’t work.
The best luck I’ve had is by directly calling the IRS Practitioner Priority Line and explaining the problem. Once you do, they’ll fax over the transcripts within a few hours, and your lawyer will have you look at them to confirm that you definitely didn’t fill it out and don’t know anyone at the address listed. Next, you’ll fill out another IRS form saying that it was a case of identity theft. Only then can you correct the problem with the SSA and finally collect your award money—after you fill out yet another form, of course.
For a free legal consultation, call 800-562-9830
Holding People Responsible
Unfortunately, there’s usually no way to track down the identity thief but you can report the tax preparer if one is listed. The IRS has a number of forms available to send them complaints about misconduct and abuse to prevent unethical tax preparers from doing it again.
For answers to more Social Security questions, check out my free Social Security Disability eBook.
Call or text 800-562-9830 or complete a Free Case Evaluation form
