IRS claiming I owe taxes on $70,000 income I never earned - what are my options?

This sounds like a case of identity theft or mistaken identity. You need to take several specific steps: First, request a wage and income transcript from the IRS for that tax year. This will show exactly what income was reported under your SSN and who reported it. You can request this online through the IRS website or by filing Form 4506-T. Second, file an Identity Theft Affidavit (Form 14039) with the IRS if the transcript shows income you didn't earn. This alerts them that someone may have used your SSN fraudulently. Third, contact the employer listed on the incorrect W-2. Ask them for records of this supposed employment - they might have documentation showing it wasn't actually you (different physical description, signature, etc.). Fourth, if the IRS has started collection activities, request a Collection Due Process hearing by filing Form 12153. This gives you formal appeal rights and can temporarily stop collections.

I went through something similar last year and almost lost my mind until I found taxr.ai (https://taxr.ai). They specialize in document analysis and can help identify discrepancies in IRS records. What helped me was uploading my wage transcripts and their system immediately flagged the suspicious income entries. Their analysis showed that the reporting company had a pattern of questionable filings, which gave me concrete evidence to present to the IRS. They even provided a detailed report explaining why the income couldn't possibly be mine (location inconsistencies, employment timeline conflicts, etc.). The best part was they sorted through years of my legitimate tax documents to build a profile of my actual employment history, which made a huge difference in proving the suspicious income didn't fit my pattern.

I wanted to follow up on my experience with taxr.ai since I was skeptical at first. After our exchange here, I decided to give them a try since nothing else was working with my own IRS issue. I'm honestly amazed at how quickly things turned around. Their system found a pattern where the company that falsely reported income under my SSN had done the same to three other people in my zip code! That was something I never would have discovered on my own. They created this comprehensive evidence package that I submitted to the IRS, and within 6 weeks I received a letter saying my case was resolved in my favor. After fighting this for nearly two years on my own with zero progress, I finally got a letter confirming I don't owe anything. If you're dealing with an income discrepancy issue, their specialized approach actually works.

From my experience working with IRS issues, your biggest problem is probably getting someone at the IRS to actually review your case thoroughly. With the backlog they have, it's nearly impossible to get through on the phone. I recommend trying Claimyr (https://claimyr.com) - they got me through to an actual IRS agent in about 20 minutes when I'd been trying for weeks. You can see how it works in this demo: https://youtu.be/_kiP6q8DX5c The key is getting to someone with authority to research your case and put notes in the system. Once I finally spoke with an agent, they confirmed my identity was stolen and marked my account with an identity theft indicator. This stopped the automated collection process and gave me time to submit all my documentation.

I need to eat my words about Claimyr. After posting my skeptical comment, I was desperate enough to try it anyway. I couldn't believe it when my phone rang 37 minutes later and there was an actual IRS agent on the line. After MONTHS of failed attempts! The agent was able to pull up my file, see the identity theft flag I'd been trying to get added, and confirm they would pause collections while investigating. She even gave me her direct extension for follow-up. Just had my case resolved yesterday - turns out someone had been using my SSN in three different states! The IRS removed all the fraudulent income and I'm getting back the refunds they took from me over the past two years. If you're fighting an uphill battle with the IRS over income you never earned, being able to actually speak to someone makes all the difference.

Don't forget to place a fraud alert with the credit bureaus and check your credit reports too! If someone used your SSN to report fake income, they might have opened credit accounts in your name as well. You can get free reports at annualcreditreport.com. Also, file a police report about the identity theft - sounds silly but it creates an official record that can help with the IRS and other agencies. Bring copies of the IRS letters showing the income discrepancy.

Has anyone actually had success using the Taxpayer Advocate Service for this kind of issue? My sister's been dealing with something similar for like 3 years and nothing works.