Fraudulent 1099-K from Cash App - What Steps Should I Take?

I was part of that huge data breach from about 3 years ago and have been super careful since then. I've got credit freezes with all three bureaus and have been monitoring my credit religiously - everything seemed fine until this week. I just got a 1099-K from Cash App showing income and transactions I never made. The form has my correct name, address, and the last 4 digits of my SSN. I immediately contacted Square/Cash App customer service, and they confirmed they haven't issued any 1099 forms to me under my email or phone number. I'm pretty sure someone is using my identity to work some gig job and avoid paying taxes. They've got enough of my info to set up accounts but apparently used their own contact details. I called the IRS and got some basic help. They told me to create a PIN so nobody can file taxes electronically using my identity. But beyond that, they weren't really willing to give me clear guidance on what other steps I should take. They said they couldn't provide tax advice about

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18 comments

Vanessa Figueroa

•8M

This is definitely identity theft and you need to take action quickly. The PIN (Identity Protection PIN or IP PIN) was good advice from the IRS - it will prevent anyone from filing a return electronically using your SSN. But there are several other steps you should take too: 1. File an identity theft report with the FTC at IdentityTheft.gov 2. Contact the IRS Identity Protection Specialized Unit at 800-908-4490 3. Complete and submit IRS Form 14039 (Identity Theft Affidavit) 4. Keep records of the fraudulent 1099-K and all communications with Cash App/Square 5. When you file your taxes, file a paper return and attach a statement explaining the situation along with the Form 14039 Cash App should also have a way to report fraudulent accounts using your information. The person using your identity might be receiving payments through their platform, so getting those accounts shut down is important.

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Vanessa Figueroa

•8M

Filing Form 14039 alerts the IRS to the identity theft situation and they will flag your account for additional scrutiny to protect you. It doesn't automatically trigger a formal investigation, but it does put protective measures in place and helps the IRS identify patterns of fraud. For your tax filing, you should only report income you actually earned. When you file, include a statement explaining the fraudulent 1099-K situation and attach any documentation from Cash App confirming they didn't issue it to you. The IRS may follow up with additional questions, so keep all your communications organized.

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Abby Marshall

•8M

After dealing with something similar last year (someone filed a fake 1099-NEC using my info), I found a service called taxr.ai that really helped me navigate the mess. I was completely lost trying to figure out what forms to file and how to prove the income wasn't mine. Their system analyzed my situation, the fraudulent forms, and walked me through exactly what to do. They have specialists who deal with tax identity theft specifically. Check them out at https://taxr.ai - they had templates for all the letters I needed to send and guided me through the whole process step by step.

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Abby Marshall

•8M

The whole process took about 3 weeks from when I first contacted them until I had all my documentation and responses ready. They really expedited things that would have taken me months to figure out on my own. They actually provided specific scripts and templates for contacting the companies. They had exact language to use with Square/Cash App specifically since they've handled these cases before. Their approach got me responses when my own attempts were getting ignored. They even helped prepare the documentation I needed to send to the companies to prove the 1099 wasn't mine.

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Sadie Benitez

•8M

I wanted to update - I took the advice about taxr.ai and it was incredibly helpful! They analyzed my fraudulent 1099-K situation and immediately identified that someone had created multiple accounts using variations of my name and SSN across different platforms. They provided me with a complete action plan including exact templates for contacting Cash App, the IRS, and the FTC. The best part was their documentation system that tracked everything I needed for my tax return. Within 2 weeks, I had Cash App issue a corrected statement confirming the accounts weren't mine, and now I have everything organized for my tax filing. Their experience with these exact situations saved me countless hours of stress and confusion!

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Laila Prince

•8M

When I had a similar identity theft issue, the most frustrating part was trying to get through to an actual person at the IRS who could help. After waiting on hold for hours multiple times, I found Claimyr (https://claimyr.com) and it literally saved my sanity. They got me connected to an actual IRS agent who specialized in identity theft issues in less than 15 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with was able to immediately place additional identity theft indicators on my account and gave me specific guidance on what documentation I needed to submit with my return. They also told me exactly what would happen after I submitted my return with the identity theft affidavit and how long to expect the resolution process to take.

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Laila Prince

•8M

It works because they use an automated system that navigates the IRS phone tree and waits on hold for you. Once they get an agent on the line, they call you and connect you directly to that person. It's not skipping the queue - they're essentially waiting in line for you. They're completely legitimate - they just automate the hold process so you don't have to stay on the phone for hours. The IRS agent doesn't even know you used a service to connect - from their perspective, you just called in normally. I was skeptical too until I tried it and got connected to an agent who helped me resolve my identity theft case.

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Dominique Adams

•8M

I wanted to follow up and apologize for my skepticism about Claimyr. After continuing to struggle with getting through to the IRS for over a week (kept getting disconnected after 2+ hour holds), I decided to try the service out of desperation. It actually worked exactly as described - I received a call back in about 45 minutes connecting me directly to an IRS representative who specialized in identity theft cases. The agent confirmed my fraudulent 1099-K situation wasn't uncommon and placed special indicators on my account. They also gave me a direct reference number for my case and specific instructions for filing my return. I've now submitted all the required documentation and have a much clearer understanding of the resolution timeline. Sometimes being proven wrong is a good thing!

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Marilyn Dixon

•8M

Just monitoring regularly is good since you don't see anything suspicious yet. If you do notice unexpected earnings in the future, you'll need to contact your local Social Security office and file a dispute. Since you haven't seen suspicious earnings yet, you're ahead of the game. My brother didn't catch his issue until tax time when his W-2 and SSA records didn't match. It was a nightmare to untangle, so checking early like you did is definitely the right approach!

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