I read another account this morning of a taxpayer using a professional’s credentials to file a fraudulent tax return. In this case the CPA prepared other late tax returns for the taxpayer but not this late-filed fraudulent return. CPA-prepared returns are afforded different treatment than self-prepared returns under IRS examination. Of course, the taxpayer had access to all the information required for this type of identity theft. The taxpayer is now incapacitated and not able to answer to the situation.
Proving that you didn’t prepare the return (and are not responsible for penalties) could be difficult. In any situation, proving the negative, ie. “I didn’t do it” is often factually difficult.
I don’t immediately have any ideas on how to deal with this type of identity theft.