Tax Fraud

[BINKER]

I know of someone who has been married for about 4 years....She has three children from a previous marriage....Since she has been married she still files her tax return as single....Instead of marking married...or married filing seperate....She marks single.....This is fraud isn't it....Because she would be getting more in her refund by filing single other then letting the government know that she is married and he lives in the house and is helping to support these children that are not his....Please tell me if this is illegal....And please tell me what can be done about this ....Who can you notify to report something like this ....What is the name of your state? Pa.

 

[Snipes5]

Yes, that is tax fraud. Go to www.irs.gov and look up "fraud". There is a phone number you can call. They will want details if you have them, such as her name, address, etc.

Snipes

 

[dallas702]

And why are you sticking your nose into her business? The IRS will catch up to her sooner or later. Unless you are determined to create an enemy for life, leave it alone.

 

[BRN2005]

Actually "Dallas", you are wrong on this point. Fraud is everyone's business. It matters not whether it is tax fraud, insurance fraud, disability fraud or whatever. If someone is defrauding the system in order to get more than their fair share or pay less than their fair share, then the remainder of us are forced to pay more to cover the cost of the fraud. ie Insurance rates are sky high due in part to the fact that there is so much insurance fraud and someone has to pay the difference.

 

[dallas702]

I know that theory, but sometimes it costs the government (you and I) far more to investigate and collect from these tiny situations than the $$ the might get.

Also, I'm not so sure she is really coming out ahead by filing this way.

 

[LdiJ]

I know that theory, but sometimes it costs the government (you and I) far more to investigate and collect from these tiny situations than the $$ the might get.

Also, I'm not so sure she is really coming out ahead by filing this way.

Oh yeah....she is. Its almost guaranteed that she is collecting EIC, which is a huge bite in the taxpayer's wallet. The IRS has a big push on to reduce and catch EIC fraud. In addition, she may also be eligible for the additional child tax credit, which is another refundable credit....a credit she probably wouldn't get filing a joint return.

Unfortunately this is a MAJOR problem. Billions of dollars get paid out yearly in false EIC claims.

 

[Snipes5]

She would probably get ACTC, and probably more of it if she files married, unless the guy is making >100,000.

They will catch her with the EIC sooner or later.

Snipes