Red Flag 10

 

Tens of thousands of people are gainfully employed by using someone else’s social security number.  The wages they earn are report to the Federal and State agencies such as the Internal Revenue Service and Social Security Administration.

 

If 100 people are employed by using your Social Security Number, and each earns just $10,000 per year; your Social Security Records will show and additional $1,000,000 in earnings. 

 

Would those kind of earnings put you in a different tax bracket? 

 

Now, let’s say you report $50,000 in earned income, and you are expecting a tax refund.  The IRS will withhold your refund because you should have reported income of $1,050,000 and paid taxes on that income. 

 

In addition to not receiving a refund, you can expect to a letter from the IRS requesting that you pay your taxes and a late penalty on the $1,050,000 in earnings.

 

Now try battling the IRS on your own.

 

One way to detect if someone is using your Social Security Number for employment is to check your social security earnings annually. You may request your Social Security earnings each year from the Social Security Administration.  Information on how to request a statement is given in Related Links Page.

 

Do you have children?  We discussed in an earlier Red Flag Diary that the theft of identities of children is becoming more common.  Request your children’s Social Security Earnings annually too.  They shouldn’t have any (unless you employ them as part of your business).  If they do have Social Security earnings, or if you are able to obtain a credit report on them – we call it a Red Flag!