Dallas, TX asked in Tax Law and Identity Theft for Texas

Q: Can I sue my sister for stealing my identity? she created crypto accounts using my name and didn't pay any taxes on it

She created multiple crypto accounts in my name and made capital gains trading but never paid any taxes, can I sue her for it? I would like to hold her accountable for the taxes she occurred in my name. I don't want any future issues with the irs. Nor do I wanna deal with any legal issues, because of her actions.

Thank you so much for your time I appreciate any advice!

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1 Lawyer Answer
James L. Arrasmith
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Answered
  • Tax Law Lawyer
  • Sacramento, CA

A: Yes, you can potentially sue your sister for identity theft, fraud, and damages caused by her actions. By using your name to create cryptocurrency accounts and failing to pay taxes on the capital gains, she has exposed you to serious legal and financial consequences. It's essential to protect yourself and your credit by addressing this situation quickly.

You may want to consider filing a police report to document the identity theft. This report will help you with the IRS and credit reporting agencies when you need to prove that you were not responsible for the income or taxes tied to the accounts your sister created. This can also be useful in a civil lawsuit against her.

In addition to pursuing legal action, you should notify the IRS and work with them to clear your name of any tax liability related to these accounts. They have procedures in place for victims of identity theft, and it's important to get this resolved before it escalates. Taking immediate steps will help you avoid further complications down the line.

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