Physicians targeted by identity theft tax scam The California Medical Association (CMA) has received reports from physicians that fraudulent federal income tax returns have been filed using physician names, addresses and social security numbers. In many cases the fraudulent tax return includes the name of an unknown person listed as the physician's spouse. Sometimes, this other name is a prior patient of the physician. Affected physicians are likely to learn of the scam by receiving a 5071C letter from the IRS alerting them of possible fraud. Physicians may also have received a rejection notification when attempting to electronically file their taxes. This occurs because a return has already been filed using that social security number. If you learn that your identity has been compromised in this way, act quickly and consider the following steps. IRS – Contact the IRS through its identity theft website, or by phone at (800) 830-5084, to let officials know you have been a victim of this scam. If you have been unable to electronically file your return this year, you should still file a paper return and attach an IRS 14039 Identity Theft Affidavit to describe what happened. Also attach copies of any notices related to this issue that you received from the IRS, like the 5071C letter. Be sure to also notify your tax preparer. Verify with the IRS and your tax preparer where to mail your paper tax return, based on the type of return you are filing and your geographic area. If you have not received a notice from the IRS but believe your personal information may have been used fraudulently or are concerned about whether you may have been victimized, call the IRS Identity Protection Specialized Unit at (800) 908-4490. Additional information is available on the IRS website. Office of the California Attorney General – Physicians affected should register the identity theft with the California Attorney General. Not only is the Attorney General's website a great resource for identity theft victims, but more information about the victims of this tax scam makes it more likely that an investigation could determine the source of the scam. FTC – File a complaint with the Federal Trade Commission (FTC). This not only helps the FTC identify patterns of abuse, but the printed version becomes your "identity theft affidavit." That affidavit, along with a police report, constitutes your identity theft report, which you will need for the IRS. The FTC also recommends several other immediate steps to take and provides relevant helpful information on its website. Police Report – Consider filing a report with the local police in the jurisdiction where you reside. Bring with you all documentation available, including the state and federal complaints you filed. This will likely be necessary if there is financial account fraud as a result of the identity theft. However, if the only fraud is tax fraud, the police report is likely unnecessary unless specifically requested by the IRS. Social Security Administration – Call the Social Security Administration's fraud hotline at (800) 269-0271 to report fraudulent use of your Social Security Number. To find out if your number is being used for fraudulent employment, you can also request your Personal Earning and Benefits Estimate Statement from the Social Security Administration website or by phone at (800) 772-1213. Make sure to check the report for accuracy. Financial Accounts – Physicians should also consider taking steps to protect their various financial accounts, such as running a credit report or placing a credit freeze on any existing credit cards. The FTC, Attorney General and DOJ websites referenced above provide several suggestions on how to protect your financial interests in the event of identity theft. Additional Information – The U.S. Department of Justice website has additional information about identity theft and fraud. CMA will continue to monitor this fraudulent tax scheme and keep physicians up to date. If you have been a victim, and may have information to help us determine the scope of the situation, please contact the CMA Center for Legal Affairs at (800) 786-4262. March 2, 2017 General Tax 0 0 Comment Read More »
CMA Capitol Insight: Sept. 28, 2015 CMA Capitol Insight is a biweekly column by veteran journalist Anthony York, reporting on the inner workings of the state Legislature. Shaping the ballot The legislature may be in recess, but the political fights in Sacramento continue. With lawmakers gone for the year, attention is turning to the ballot, where spillover from the legislative session, and some infighting among Democrats, are beginning to emerge. The big question will be what, if anything, to do about taxes. In the last couple of weeks, we have seen two different versions of proposals to extend the upper income taxes in Proposition 30 – each with its own unique twist, and each with its own set of political problems. First, we saw a coalition of major labor groups led by the California Teachers Association (CTA) come forward with their proposal, which would allow the quarter-cent sales tax in Prop. 30 to expire, while extending the upper income taxes in the 2012 measure for another seven years. But the measure would exempt these new revenues from Prop. 2, the budget reserve fund passed by voters just last year, which was pushed by Gov. Brown as a necessary tool to help keep state spending in check and curb volatility in the budget process. The move by CTA to exempt the revenues from Prop. 2 is an acknowledgement of the deep divisions among labor about how to move forward with tax policy. Because of the way Prop. 2 and the school funding guarantee in Prop. 98 work together, the fear was that any Prop. 30 extension would be gobbled up entirely by schools, leaving little or no money for health care, social services and other state programs. By moving the money around the new budget reserve, CTA was able to maintain its coalition, which at one point looked as though it would break apart over this contentious spending issue. But the move makes it even less likely that the proposal will gain the support of Gov. Jerry Brown, who sold Prop. 30 to voters in 2012 as a temporary tax measure and convinced voters that Prop. 2 was a key part of getting the state’s fiscal house in order. Ultimately, it looks as though the teachers’ union opted to bend to the will of its coalition partners instead of the governor. But it makes the sales pitch of the new proposal that much tougher next year. Meanwhile, a splinter group led by the United Healthcare Workers has a sort of Prop. 30 on steroids that would include an additional percentage point above and beyond the Prop. 30 threshold for those making more than $5 million per year. That money would be set aside for health care and early childhood programs. While it’s unclear how this tax battle will play out, the moves we have seen over the last couple of weeks are a nod to the fact that the calendar for initiatives for 2016 is becoming a factor. New state rules require legislative hearings on any proposal heading to the ballot, slowing down the qualification process. If these initiatives are going to be tweaked or rewritten, there is pressure to get final language soon if the goal is still the 2016 ballot. But that raises another question—why 2016? The income taxes in Prop. 30 don’t actually expire until the end of calendar year 2018. But 2016 is a presidential year, and the conventional wisdom is that turnout will be higher and more Democratic in 2016, and that this next electorate may be more inclined to pass tax increases than the 2018 electorate. But is that really true? 2018 will be a high-intensity election, with an open race for governor and quite possibly an open U.S. Senate seat, depending on whether or not Dianne Feinstein decides to run for reelection. Those two top-of-the-ticket races will attract great interest. And it is possible with these state primary rules that at least one of those races may see two Democrats running against each other. Wouldn’t that boost Democratic turnout as well? These are the strategy moves that initiative backers must make in the coming weeks as they decide how, when and whether to move forward with tax proposals. Their decisions will shape the next ballot, and could impact state politics and finances for years to come. October 2, 2015 General CMA Capitol Insight, Tax, Anthony York, Election 0 0 Comment Read More »
Physicians warned of identity theft tax scam For a second year, the California Medical Association (CMA) has received reports from physicians that fraudulent federal income tax returns have been filed using physician names, addresses and social security numbers. In many cases the fraudulent tax return includes the name of an unknown person listed as the physician's spouse. Generally, this other name is a prior patient of the physician. Affected physicians are likely to learn of the scam by receiving a 5071C letter from the IRS alerting them of possible fraud. Physicians may also have received a rejection notification when attempting to electronically file their taxes. This occurs because a return has already been filed using that social security number. If you learn that your identity has been compromised in this way, act quickly and consider the following steps. IRS – If you have become aware that you are a victim of this scam, the IRS 5071C letter provides instructions about contacting the IRS through its identity theft website, or by phone at (800) 830-5084, to let officials know you did not file the return referred to in their letter. If you are a victim, you may not be able to electronically file your return this year, in which case you should file a paper return and attach an IRS 14039 Identity Theft Affidavit to describe what happened. Also attach copies of any notices related to this issue that you received from the IRS, like the 5071C letter. Be sure to notify your tax preparer if this happens to you. Verify with the IRS and your tax preparer where to mail your paper tax return, based on the type of return you are filing and your geographic area. If you have not received a notification from the IRS but believe your personal information may have been used fraudulently or are concerned about whether you may have been victimized, call the IRS Identity Protection Specialized Unit at (800) 908-4490. Additional information is available on the IRS website. Office of the California Attorney General – Physicians affected should register the identify theft with the California Attorney General. Not only is the Attorney General's website a great resource for identify theft victims, but more information about the victims of this tax scam makes it more likely that an investigation could determine the source of the scam. FTC – File a complaint with the Federal Trade Commission (FTC). This not only helps the FTC identify patterns of abuse, but the printed version becomes your "Identity Theft Affidavit." That affidavit, along with a police report, constitutes your Identity theft report, which you will need for the IRS. The FTC also recommends several other immediate steps to take and provides relevant helpful information on its website. Police Report – Consider filing a report with the local police in the jurisdiction where you reside. Bring with you all documentation available, including the state and federal complaints you filed. This will likely be necessary if there is financial account fraud as a result of the identity theft. However, if the only fraud is tax fraud, the police report is likely unnecessary unless specifically requested by the IRS. Social Security Administration – Call the Social Security Administration's fraud hotline at (800) 269-0271 to report fraudulent use of your Social Security Number. In case your number is being used for fraudulent employment, you can also request your Personal Earning and Benefits Estimate Statement from the Social Security Administration website or call (800) 772-1213. Make sure to check the report for accuracy. Additional Information – Consult the U.S. Department of Justice (DOJ) website for additional information, including checklists, about identity theft and fraud. Financial Accounts – Physicians should also consider taking steps to protect their various financial accounts, such as running a credit report or placing a credit freeze on any existing credit cards. The FTC, Attorney General and DOJ websites referenced above provide several suggestions on how to protect your financial interests in the event of identity theft. CMA will continue to monitor this fraudulent tax scheme and keep physicians up to date. If you have been a victim of this scheme, and may have information to help us determine the scope of the situation, please contact the CMA Center for Legal Affairs at (800) 786-4262. April 29, 2015 General CPLH, Identity Theft, Legal Advocacy, Tax, California Physician Legal Handbook 0 0 Comment Read More »
Medical board to suspend licenses of physicians with delinquent taxes The Medical Board of California will soon be sending notices to physicians who have outstanding tax obligations, warning that their medical licenses may be suspended if they do not pay their tax obligation or enter into a payment plan within 90 days. A new state law, passed in 2011, authorizes the medical board to deny an application for licensure and to suspend the license of any licensee who has outstanding tax obligations due to the Franchise Tax Board (FTB) or the State Board of Equalization (BOE) and appears on either the FTB or BOE's certified lists of top 500 tax delinquencies over $100,000. Physicians who fail to either pay the taxes owed or enter into a payment installment plan with the relevant agencies will have their licenses denied or suspended until the Medical Board of California receives a release from the FTB or BOE. The form for requesting a release will be included with the preliminary notice of suspension. Suspensions will be posted on the medical board's website and publicly distributed through its electronic notification system. The law prohibits the Medical Board of California from refunding any money paid for the issuance or renewal of a license where the license is denied or suspended. Names of those owing money to that state are published by the FTB and BOE on their websites. Physicians can check if they are currently on the FTB's or the BOE's lists. If you believe you are on either list in error, please call the FTB at (866) 418-3702 or the BOE at (916) 445-5167. Click here for more information. August 14, 2013 General Professional Development and Licensure, Tax, Medical Board of California 0 0 Comment Read More »
