Child Tax Fraud

Bodylevive By Bodylevive, 9th Feb 2016 | Follow this author | RSS Feed
Posted in Wikinut>Money>Tax

What you may not know about child tax fraud can be costly in penalties , even jail time. Tax fraud has been going on for years and is a rising crime.

Claiming Someone Else Child On Your Tax Return

Every tax year, many individuals claim a child that does not belong to them and nor did they provide care for. The child did not live in the same home with them 7-12 months out of the year. So if you did not do any of these things, you do not have the authority or the right to claim a child that is not yours to claim.

Claiming someone else child for gain has been going on for years but don't think you're in the clear because you haven't been contacted by the IRS. Sometimes this act goes on for years before the person is contacted but that doesn't mean that the unlawful person has escaped penalties and or jail.

Making False Statements

"Taxpayers who rely on frivolous arguments may also face criminal prosecution for: making false statements on a return under section 7206(1), a felony, for which the penalty is a fine of up to $250,000 and imprisonment for up to 3 years."

Most people find out someone has claimed their child when they file electronically and the status returns "REJECTED." What an awful thing for anyone to endure! Don't panic because this happened to you, the IRS wants you to mail in a paper return with your W2,1099 and other documents to them and they will handle it from there.

The IRS Investigation

Now you, an honest tax filer, has to wait until the IRS investigate to find out who really has the right to claim the child. You will have to wait to receive your refund because of this. The process takes about 3 months or less to complete. I know and I understand that you should not be the one to wait but that's how it is.

Why would someone do such a thing? The answer to that is money honey! It's selling a child's information for part of the EIC. Most of the child information sellers, settle for half of the earned income credit when the refund is returned to the other person. I was a victim of this twice and I was furious.

You can use the direct deposit or the check in the mail option. I was glad to see my check arrive in the mail and it was right on time. Yes, I know--I could have used it 3 months earlier. I had to look at it this way, sometimes bad things happen to good people to keep from being angry.

The IRS Is Not A Snitch

The IRS is not a snitch and will not tell you who the crook was that used your child's information but rest assured, you will get your return and several letters. One thanking you for your correspondence and another letter reviewing you refund amount. Mine was in the mail the same day I got the review letter.

It is very important to guard your child's information. Don't throw away anything with your child's name and social security number on it. Crooks will search throw your trash or anything that you throw out hoping to find pertinent information they can use. Even though none of that applied to how my child's information got into unlawful hands.

The Grand Child I Didn't Know I Had

My granddaughter was 5 years old before I knew about her. Her mother gave her up to a friend of her family's at birth. Finally my son told me about her and asked the person my granddaughter was living with to bring her so I could meet her and she did.

When she was 6, my son gained custody of her, he was married but the wife did not adopt the child. They broke up and he took the child with him to another location. He died Nov. 21, 2014 and the court awarded to me the custody of the minor child, she is now 11 years old.

My point is, 2 people had access to her information. The first person I told you about probably sold her information out to the highest bidder and the step-mother claimed her because she had access to her information. So, you see how fraud could have happened in my case?


Child Tax Fraud, Dependents, Fraud, Fraudulent Crime, Irs, Tax Returns, Taxes

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author avatar Bodylevive
I am a wife, mother and grand mother. Visit my online store*
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author avatar Md Rezaul Karim
12th Feb 2016 (#)

Tax is itself a crooked practice...

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