That's right try to scam the IRS...

[AmethystSquirrel]

Been working at a patriotic tax place.

This woman comes in barely speaking english with a friend to help her great. I do their taxes.

A big dude comes in with same friend to help him. He claims himself and a 'son'. (he has SS card and DOB etc. I was available and a co-worker was available. They asked to be done by coworker. Ok fine.

Another dude comes in with same friend to help him. The want a different person to wait on them. The CoWorker from yesterday thinks nothing of it, my squirrely sense goes off. I grab the owner and tell him what is up.

He lets the taxes get prepared and before they are processed we do a little digging.

Short Version
Turns out...'friend' had 3 kids and no earnable income. She was getting her friends to claim her kids and she was going to get the money. SCAM!
She had also brought someone else in on another day. We called each person to say Sorry we have to make an amendment and remove the kid from each of you. Oh yeah, and that will be $75 to make the amendment!

[Zerosum]

Ouch. The layers of stupidity there hurt my brain.

I'm sure the IRS wouldn't notice a temporary dependent!

Ow. Ow. Ow. Must stop thinking about this!

(I'm sorry for your proximity to these idiots.)

[taxguykarl]

Congrats on your first scammer. We see that all too often.

It's good that you brought this to the attention of your store manager--CW who processed these returns W/O question could well be in on this scam.

"Friend" who was farming out her kids as well as the clients claiming the kids can be barred from claiming ANY dependents for 5 years in addition to the IRS penalties.

[PhotoChick]

Most likely they lied to the co-worker just like they lied to the OP.

[wagegoth]

I'm sure the IRS wouldn't notice a temporary dependent!

Before efiling and computer records, when checking depended on government workers, they probably would have gotten away with it easily. Now, not so much.

[SG15Z]

They tried to scam the IRS?????!!!!! Good thing your squirley sense was working. Man the level of stupid! It hurts me brain!

I mean yeah the IRS may not notice at first, but when they do... God help them.

[taxguykarl]

I mean yeah the IRS may not notice at first, but when they do... God help them.

Not only them but the tax service that forwarded a clearly bogus claim. Under new regs AmethystSquirrel's CW could be prosecuted as well as the scammer. Moreover, the tax service can get its e-file license suspended.

[protege]

They tried to scam the IRS?????!!!!! Good thing your squirley sense was working. Man the level of stupid! It hurts me brain!

Yep, the IRS is one of the few entities that *can* extract blood from a rock...

Well, that and they can nail you for fines up to $100k and/or 5 years in jail. Oh, and from what I understand, the statute of limitations doesn't apply to fraud cases.

[Irving Patrick Freleigh]

"OK, Marge, if anyone asks, you require twenty four hour nursing care, Lisa's a clergyman, Maggie is seven people, and Bart was wounded in Vietnam!"

"Cool!"

[taxguykarl]

Well, that and they can nail you for fines up to $100k and/or 5 years in jail. Oh, and from what I understand, the statute of limitations doesn't apply to fraud cases.

Correct, Protege. Furthermore, actual knowledge of a fraud scheme is not required to make the case; only the "lack of due diligence" on the preparer's part.

[smileyeagle1021]

Correct, Protege. Furthermore, actual knowledge of a fraud scheme is not required to make the case; only the "lack of due diligence" on the preparer's part.

Oh, and on the payer's side of things... if you are an accountant at a firm that doesn't remit taxes and you don't report it to the IRS YOU are also considered liable for those taxes as well as the company.
One of my professors has a client who got in that world of pain, he knew that the business owner wasn't remitting the trust funds like he was supposed to and the IRS went to him and said "we got (however much of what was owed) by the owner, he can't pay the rest of it, we have determined sense you had knowledge and failed to report it you owe the remaining $10,000"

the moral of both stories children... don't with the IRS

[friendofjimmyk]

What I can't believe is that they went to the SAME place to pull the scam! I mean, at least put in more effort than that!

[taxguykarl]

What I can't believe is that they went to the SAME place to pull the scam! I mean, at least put in more effort than that!

As a matter of fact, this should not surprise you. A scammer finds out sooner than our management team who (or which office) is not as diligent and will send their toadies there. The problem is that we have their names, addresses, social security numbers and more detailed info on their finances and spending habits than most of their relatives.

[MadMike]

My ex had the nerve to try to scam the IRS awhile back. Our son has always lived with me, and she's done almost nothing for him since she ran out when he was 2 1/2. So I can, and do, claim him.

I think it was in '98 that she tried to make a deal with me where I'd let her claim him, let her claim the Earned Income Credit (not sure how that even works since she can't hold down a job), and split the refund with me. Now, I'm sure I'm not alone when I say I have no love for the IRS, but I'm not about to fuck with them either. It was a nonissue anyway, as I had already filed, and told her so. I thought that was the end of it, but I was wrong.

A month or so later, I got a letter from them informing me that someone else had tried to claim one of my dependents. Since I only have one, I had a pretty good idea of who it was. I had already received my refund, so no worries there, but I was worried that they'd think I was in on it and come after me. So I called them to let them know what was going on, and they didn't seem too concerned about it. That was right around the time the IRS was under fire for being too heavy-handed, and were supposedly trying to reinvent themselves as a kinder, gentler agency, so that probably had a lot to do with it.

Nothing bad came of it, at least not to me, but it still pisses me off to this day. She never did a damn thing for him, and yet had the nerve to try to claim that she was the one caring for him, and tried to cash in on it.

[taxguykarl]

To answer your query, Mike:

The Earned Income Tax Credit or the EITC is a refundable federal income tax credit for low to moderate income working individuals and families. Congress originally approved the tax credit legislation in 1975 in part to offset the burden of social security taxes and to provide an incentive to work. When the EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit.

To qualify, taxpayers must meet certain requirements and file a tax return, even if they did not earn enough money to be obligated to file a tax return.

-IRS

If you claim a child, you qualify for more money from the IRS--even if you did not have anything withheld (that's what a refundable credit means). You can see the tables for yourself at irs.gov.

Yes, this is something of a welfare program with all the insidious effects including (but not restricted to) workers declining promotions or job offers in order to keep that goodie; working only part-time to stay in the optimal range (maximum credit); and other shenanigans I won't mention to avoid jacking AmethystSquirrel's thread.