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Is my mom (ID-theft victim) liable to pay back CA state income tax (for thief) withdrawn from account she didn't know she had?
Anonymous2 views3 answers
My mother used to work with a corporation as an independent contractor. She is a physician and the corporation had opened a joint account with her in the past to collect medical billing. She ended the business relationship with the company, and they kept the account open and in use without her knowledge. My mother became a victim of ID-theft and the thief failed to file CA state taxes (where they presumably live), so the IRS seized some $1400 from said account. The corporation is now stating that my mother is liable to pay back this money when this would not have happened if they didn't continue to use the account/keep it open. Would she be liable to repay this money for taxes that aren't hers? She lives in Cook County.
This is a question best asked of a CA attorney who handles identity theft. You might wish to repost this question from a CA location to attract those in a better position to answer. Your mother should be handling this herself.
The issue of whether she is liable for the taxes, and whether she is liable to repay the corporation are separate. Depending on her agreement with the corporation, she may in fact be liable to them for the money that was removed. On the other hand, she may be able to get the money back from IRS or state of CA if she can prove she was an identity theft victim. She should also insist in writing that they immediately either close the account or remove her name and personal information from the account. She should consult an attorney who handles tax matters to assist her with the tax identity theft issue. She should also pull her credit reports to make sure the ID thief didn't open other accounts in her name, and put a fraud alert on her credit file. She should also make an identity theft police report, and consult the social security administration to report the use of her social security number by an identity thief.
