Hello, this is my first time posting here. I wanted to ask on behalf of a close friend who is stressed out of her mind. This will require a bit of context on her situation so bear with me. She has non-resident parents, they file their taxes, just without a ssn. A while ago her dad wanted to use her ssn (she is a US citizen) to open a LLC and a credit card for him to use to build credit and have income with the Masonry business he opened with her ssn. She was only 17 when this happened and she had no idea how any of this worked and had no choice but to just give him her ssn for this. So she has a business under her name. he files taxes and this business and everything is alllll under her name. From what she tells me, he does not communicate anything to her. friend has been stressed about why her tax return has been getting rejected ever since she started working part time in 2023 and it got rejected again this year. We live in TN where there is no income tax and shes also been getting letters from the irs because he racked up 20k in debt from the irs under her name. Truthfully i have no idea how to help her because i filed my w-2 just fine and have never heard of anything like this. Does anyone have any advice for her?
Tax refund keeps getting rejected!
byu/Silentbirdie183 intax
Posted by Silentbirdie183
4 Comments
She has a lot of issues. And she has some big trouble.
But your immediate question was why was her tax return rejected. Your tax software should give her a reason when it sends the rejection. You’ll have to tell us what that reason was to get an accurate answer.
The following is entirely speculation:
1) Her father already filed a return under her name.
2) The previous year’s AGI is wrong. She should try saying zero.
I mean the simple truth is this is identity theft on the part of her father.
Assuming her parents are legally in the US even if not residents, I’m sure they had a better option. If they are not legally present then hey may have been in a tough place but stealing your kids identity and wracking up debt on her behalf has to be the worst one.
The rejection of her efile isn’t a problem. She can always paper file. Her dad stealing her identity and racking up major debt is the issue. And I don’t know how she for anything but report the truth. She needs a lawyer probably.
Yes, she’s going to need an attorney and a come to Jesus with her Dad. This is a serious problem. A 20k debt to the IRS is something that can get her bank accounts emptied, wages garnished and property taken away by the IRS. If her father is illegal (assuming he is with no SSN) he will probably have to leave the country or could be arrested for fraud.
All-in, very bad.
All the money the LLC makes in profit is carried over to her personal income. The only way an LLC can file a separate tax return is if they file as an S Corp, which have separate regulations.
It seems that her parents haven’t been helping with the tax side of things and now she’s in debt with the IRS and it will just increase.
The letters from the IRS should have the tax years and form.