Source: Appeal of Mendoza; Cal St. Bd. of Equalization, Case No. 575960
In Mendoza, a taxpayer was notified by the IRS that Ohio wages had been reported under his Social Security Number. Mr. Mendoza had never worked in Ohio and was a full time California resident. He took NO STEPS to report his identity theft. Eventually, the CA Franchise Tax Board assessed taxes on those wages. He appealed and lost because he could not provide any evidence to show that he had reported and fought the identity theft.
If you suspect identity theft, you should immediately:
1. File a police report with your local jurisdiction.
2. File Form 3552, Identity Theft Affidavit, with the California FTB.
3. File Form 14039, Identity Theft Affidavit, with the IRS.
4. Seek assistance from a credit protection agency to “lock down” your credit and regularly monitor your credit reports.
Summary: It’s important to act quickly to limit future damage including tax assessments for income incorrectly reported under your Social Security number.
