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KEY TAKEAWAYS
- Unexpected 1099-K forms are alerting Utah residents to potential identity theft.
- Many victims receive these forms indicating income they never earned, often due to misuse of personal information.
- Experts advise reporting suspicious 1099-Ks to the IRS and authorities to prevent tax liabilities.
SALT LAKE CITY — As tax season rolls around, many Utahns are seeing a familiar influx of forms in their mailboxes. But this year, one form in particular is raising red flags for some residents.
A growing number of Utahns are receiving unexpected 1099-K forms, indicating taxable income they didn’t earn — often due to identity theft.
The issue was first flagged by a Utah man who contacted Get Gephardt after receiving notice of a business credit card for which he’d never applied. Despite not owning a business, the notice seemed to confirm his identity had been stolen.
Our investigation uncovered a troubling trend: Many Utahns are falling victim to a double whammy of identity theft. First, thieves use their personal information to open accounts or perform transactions under their name. Then, the victims are shocked to receive tax forms indicating that they owe taxes on income they never earned.
What is a 1099-K?
The Form 1099-K is used by the IRS to track how much money people have received on peer-to-peer payment apps like Venmo, PayPal, Cash App or Zelle. These companies send out 1099-Ks to their users who get paid on their platforms for stuff they sell through online marketplaces or for side gigs such as freelancing, tutoring or dog walking.
But if a 1099-K turns up in your mailbox without you expecting it — or you don’t use peer-to-peer services to get paid for side gigs — it could be a sign that your personal information has been misused.
Experts urge action
Susan Speirs, CEO of the Utah Association of CPAs, is urging individuals who receive these forms unexpectedly to take immediate action.
She said that if you get one of these forms and suspect it’s fraud you need to report it to the IRS, your financial institutions and law enforcement right away.
Don’t ignore a 1099-K, even if it’s bogus. It’s critical to address any mistaken income reporting to avoid further complications.
Ignoring these forms could leave you facing unwanted tax liabilities.
“If you’re getting this in the mail, somebody’s got your information,” Speirs warned.
Scammers frequently target payment app users
Scammers are increasingly targeting Utah residents through peer-to-peer payment apps. In 2023, these fraudsters stole $210 million via such platforms.
The Federal Trade Commission reports that one in five Utahns who reported fraud last year lost money to imposters, with peer-to-peer payment apps being a primary method of theft.
The Key Takeaways for this article were generated with the assistance of large language models and reviewed by our editorial team. The article, itself, is solely human-written.