topic Fraudulent SBA Grant in Get your taxes done using TurboTax

Fraudulent SBA Grant

Mattman — Sun, 20 Sep 2020 23:06:55 GMT

Someone stole my identity and received a fraudulent SBA grant under my social security number. How do I BEST report this to the IRS so they understand I didn't receive the money and they don't try to tax me for this money. These grants are taxable in a non-fraudulent situation.

Also, I believe this money was just granted this quarter to the fraudster, so the IRS may not know about it yet.

Thanks

Re: Fraudulent SBA Grant

xmasbaby0 — Sun, 20 Sep 2020 23:14:29 GMT

https://ttlc.intuit.com/questions/1900655-what-to-do-if-you-suspect-tax-related-identity-theft

Most important) Follow the IRS procedures for reporting a fraudulent return, documented here: www.irs.gov/uac/Taxpayer-Guide-to-Identity-Theft

IRS INFORMATION REFERRAL TO REPORT VIOLATION OF TAX LAW

https://www.irs.gov/pub/irs-pdf/f3949a.pdf

If your Social Security number is compromised and you know or suspect you are a victim of tax-related identity theft, take these additional steps:

Respond immediately to any IRS notice; call the number provided.
Complete IRS Form 14039, Identity Theft Affidavit. Then print and mail or fax according to the instructions.
Continue to pay your taxes and file your tax return, even if you must do so by paper.

Re: Fraudulent SBA Grant

mesquitebean — Sun, 20 Sep 2020 23:35:54 GMT

Have you also reported it to the Office of the Inspector General of the SBA? There is a hotline phone number or a web interface for reporting fraud online when you scroll lower down on this linked page at the SBA website:

https://www.sba.gov/document/report-sba-programs-scams-fraud-alerts

I'm sure that's unsettling. I"m curious as to how you discovered it.

Re: Fraudulent SBA Grant

Mattman — Mon, 21 Sep 2020 00:14:17 GMT

Yes, I reported it to their OIG the same day I found out about the fraudulent loan. I found out about it b/c I received a loan statement for it in the mail and knew I don't own a business so I called the SBA and they confirmed it was opened using my identity (SSN, date of birth etc.). Unfortunately, you don't hear anything after you file the complaint and they don't give status updates. The customer service number for the SBA is staffed with people who also give you all sorts of contradictory information. It's horrible. I've had to get my Federal Rep's office involved but IDK how much that will do.

Re: Fraudulent SBA Grant

Mattman — Mon, 21 Sep 2020 00:15:59 GMT

Through these calls with the SBA I learned there might be a fraud grant involved too. Hence my question about that aspect b/c the grant is taxable income.

Re: Fraudulent SBA Grant

mesquitebean — Mon, 21 Sep 2020 00:45:18 GMT

You may have done this already, but I'd put an extended fraud alert (the 7-year one) with all the credit reporting bureaus and possibly even a freeze/lock at each. And check with each to be sure there have been no other credit applications in your name. You may want a credit-monitoring service to watch for any future events.

It also can't hurt to file a police report, but there is so much ID theft and Internet crime, that police offices often give it short shrift and may not do much to investigate other than tell you to report it to IRS, SBA OIG, FTC, credit bureaus, etc. But you'll have evidence that you reported it.

Also you can report to the FTC online. And the FTC report that you can print out can be used as one of the items to submit to the credit bureaus for an extended fraud alert.