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Do 4506-Ts require consumer authorization?


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So I have been asking this question for awhile now, and just learned that the IRS has recently made it much easier for creditors to submit 4506-Ts to the IRS.  Equifax even offers as service for this:

 

http://www.theworknumber.com/products/IRS-Income-Verification.pdf

 

What I am concerned about is, does the IRS still require the consumer to authorize the creditor to submit one of these forms on their behalf to receive very personal and confidential information about the consumer?  If it is required, is there anyway I can contact the IRS and get a history of all 4506-T requests for my SSN so I can further investigate?  Does the IRS provide for any penalities for misuse of this form, such as submitting with possibly a fake consumer signature/authorization?

 

I have a very strong suspicion that one of my creditors has been able to follow me from job to job solely because of this, as my employment information is not posted anywhere, including my credit report. 

 

Any info on this would be greatly appreciated.

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According to my translation of the IRS gibberish, and the description of the process on the Equifax web site, it still requires your signature in order for a third party to file a 4506-T.

 

However, that Experian site is considered a CRA...therefore you are entitled to one free copy of the data they have on you per year.

 

Call and ask for your free copy...

 

Note that this CRA also colects data by simply calling employers and asking...

 

http://www.creditinfocenter.com/community/topic/319001-how-debt-collectors-may-be-getting-salary-information/?hl=%2Bemployment+%2Bdata

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Another thought just crossed my mind, what does the verify the signature against, to prove that it is actually the consumer's signature?  If they have moved to a fully electronic process, wouldn't this in fact increase the potential fraud as now it is just zipping through the system without a human eyeball on it??

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i wouldn't be surprised if a CA or JDB filed a form on your behalf without your signature.  After all, their business model depends on half truths and sometimes outright lies.

 

Proving this would be difficult....

 

You could try calling the IRS and asking for copies...I don't know what their reaction would be.

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i wouldn't be surprised if a CA or JDB filed a form on your behalf without your signature.  After all, their business model depends on half truths and sometimes outright lies.

 

Proving this would be difficult....

 

You could try calling the IRS and asking for copies...I don't know what their reaction would be.

 

 

Doesn't the IRS have the responsibility to help protect our information?  I'm really questioning their new rule that allows these forms to be submitted to them electronically without a "wet ink" signature from the consumer.  Seems like they are more interested in processing more of these to gain the fees involved, rather that protecting our information.

 

I am 100% sure that this is what is happening in my case, as I have never signed a 4506-T for any of these collectors.  I too wonder what the IRS reaction would be to finding out that these forms have been submitted fraudulently   Is there any existing case law on this?  I can definitely see a huge class action against the IRS about this being initiated.  I bet a lawyer could make a killing off this if they would take on this case on behalf of the probably millions of consumers this is affecting...

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Well, the IRS did start using CAs to collect back taxes a few years ago.  Although I'm not certain that's still the case, it wouldn't surprise me if there is something in the tax law that allows CAs collecting taxes access to your  records.

 

For example, although not quite the same thing, but in the FCRA...

 

§ 608 Disclosures to governmental agencies [15 U.S.C. § 1681f]

Notwithstanding the provisions of section 604 [§ 1681b] of this title, a consumer reporting agency may furnish identifying information respecting any consumer, limited to his name, address, former addresses, places of employment, or former places of employment, to a governmental agency.

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Well, the IRS did start using CAs to collect back taxes a few years ago.  Although I'm not certain that's still the case, it wouldn't surprise me if there is something in the tax law that allows CAs collecting taxes access to your  records.

 

For example, although not quite the same thing, but in the FCRA...

 

§ 608 Disclosures to governmental agencies [15 U.S.C. § 1681f]

Notwithstanding the provisions of section 604 [§ 1681b] of this title, a consumer reporting agency may furnish identifying information respecting any consumer, limited to his name, address, former addresses, places of employment, or former places of employment, to a governmental agency.

 

I do not have any tax debt, so this wouldn't apply in my case...

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Signature of taxpayer(s). I declare that I am either the taxpayer whose name is shown on line 1a or 2a, or a

person authorized to obtain the tax information requested. If the request applies to a joint return, either husband or wife must

sign. If signed by a corporate officer, partner, guardian, tax matters partner,executor,receiver,administrator,trustee,or

party other than the taxpayer, I certify that I have the authority to execute Form 4506-T on behalf of the taxpayer.

Note. For transcripts being sent to a third party, this form must be received within 120 days of the signature date.

 

The form its self gives you what you need. It specifically states that whom ever signs it had to be dully authorized, this leaves the signing party with the burden to prove how they were authorized to sign on your behalf. A jdb would have a hard time proving this.

 

On the instruction sheet it clearly states, under documentation, that the document authorizing the signer must be attached to the form. It also says under signature that the taxpayer must sign.

 

There are few occasions where you would not have to sign but they do not apply to a CA or jdb, those are the enforcement of criminal actions, and child support, they courts are given permission to sign this document with only proof of a pending case. 

 

Generally, tax returns and return information are confidential, as required by section 6103.
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I can also tell you this,, I do a lot of short sales on foreclosed homes in my area, there are tons of them, and in the short sale packet their is always form 4605T, and  a third party authorization consent form. So if the Banks can't get this info without you signing an authorization, I do not see how, unless they forged your signature, a collection agency or junk debt buyer could use form 4605T to get this info on you.

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Thanks for all the good info BTO429.  I am pretty much sold on the idea at this point that the CA in this case has forged the document, assuming this is where they obtained my employment information from, which at this point I'm pretty much sold on this idea since I do not see where else they can obtain it from and other (apparently more honest) CA's/JDB's that have been after me have mysteriously not been calling me at my new place of employment, as this one particular CA has been.

 

Does the IRS have all transaction history?  Is it my right as the taxpayer to receive this information on my account?  Lets assume that I do find that the CA has forged the document and illegally obtained my tax records without my consent, what action can I take against them??

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The IRS has transaction history.  Call them.

 

We alll agree that the only way a CA/JDB could use a 4605T to obtain your info is thru fraud...except, there is Form 2848 which allows them to claim authorization...which might be yet another form of fraud.

 

(BTW..I'm guessing you are a contract programmer, perhaps working on a 1099.  If so, all the CA/JDB really needs is the name of the placement agency...and a contact there with a loose lip).

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Not  prying...but having been in the consulting/placement business myself...I'm interested in tracking this down.

 

Have you been at your current job for awhile?  Did you get it thru a placement agency?  Are you registered with any of the online job sites?  Did you ask a friend at your last job to give you a recommendation?  Have you had any recent calls from head hunters asking if you were interested in moving?

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- Been at current job for two years now.

- Found it direct.

- I am registered with a few career sites, but none of them list my past or current employers.

- Current company did not contact previous company

- Did not use any former co-worker as a recommendation, only two family members (which have been repeatedly instructed to, and trusted to not divulge my place of employment to anyone)

- No recent calls from head hunters

 

Additionally, I am very careful not to tell anyone where I work.  I have basically been in hiding ever since this crisis occurred.  My former co-workers think I'm unemployed...

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Looks like its not the IRS that they're getting my info from. I just called and after speaking with a surprisingly very helpful and patient person (I didn't know such a thing existed in a Federal agency) he assured me that no 4506-t's or any request for my tax information has ever been requested on my account.

 

So, next stop California State Franchise Tax Board.  

 

I'm also starting to wonder if these guys have connections with all of the major payroll processing companies?  The last company I was at used ADP and this one uses a different, but still equally large one.  Anyone think that's a possibility?  Wouldn't there be laws against them handing out information on employees that they process payroll checks for?

 

So after these remaining two possibilities  I am at a complete loss as to how these guys are finding my place of employment as it is literally listed nowhere.  I think someone suggested once that they could be simply cold calling all the employers in the area.  I would first ask, what area?  How would they know the "area" I was working in?  There are probably literally 10,000's of employers in my county alone and who's to say I even work in the same county I reside?  I just don't see this as being feasible.

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Yes, Googled my name and nothing.  I don't do Facebook or any social networking sites, including LinkedIn.  I never use my real name for anything online and I never ever use my work email address outside of work.  I have been ultra careful in protecting my place of employment and any other personal information about me.  I have basically been in hiding for quite a while.  No one but my few close family members know where I work. 

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For what its worth, the ADP web site does imply that all the info it uses to process payroll and other HR functions are private and secure...but doesn't seem to specifically say they won't share it with 3rd parties.

 

But...like I said...skip tracers are really good at what they do...

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