Tax fraud question?
Ok here’s my question my husband’s ex wife owes over ,500 in back child support the last time she filed income tax we got it, that was about 6 years ago. Since then she went on SSD but she told me that ever since she quit working she allows someone else to claim her other 2 children for the EIC and they give her most of the money so me and my husband don’t get it (God forbid she actually take care of her kids) but anyhow would that be tax fraud on her part as well as the other person and how would we report it to the IRS? I have her SSN but not the 2 kids’ and I don’t know who the person claiming them is. But in the past she claimed them on her income tax return. So can I report her to the IRS without having to give mine or my husband’s name as if she found out it was us it would cause a big headache as she has some visitation of the kids. Thanks to all that took the time to read and answer me. Sorry for going on just wanted to give as much info as possible.
I know her other kids don’t qualify as dependents for someone else. They live with her and she collects all the welfare she can get for them.
The children she has someone else claim are not my husbands kids we have custody of the 2 they have together so he would not have access to anything with thier SSN.
Tagged with: 6 years • child support • dependents • eic • god • headache • husband don • income tax return • irs • last time • money • ssd • ssn • tax fraud • welfare
Filed under: Fraud Information
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Not a tax expert, but what I can tell you, if you look on the EIC form, it asks at the bottom how many months out of the year the child resided with you(person claiming the child). If she’s having a friend claim the child, and the child never resided with the friend…..sounds like fraud to me-on both of their parts. She’s probably having the friend claim them, and then splitting the money with them, to avoid you guys taking a huge refund. Here’s a link for the irs site, look under "Who is a qualifying child":
http://www.irs.gov/individuals/article/0,,id=96466,00.html#QA4
Friend’s kid doesn’t fall into that category.
Next question, I’m assuming your husband has a majority of the custody, since she’s paying him support? Then, why was she ever claiming them on taxes in the first place? Usually that’s hammered out in the custody agreement, either the custodial parent uses the EIC, or you switch it every year between parents. Something else to look into legally.
For the other info, call the IRS. Look on their website, they do have a special hotline to report fraud, they probably do take your name and info, but it’s supposed to be kept anonymous. But, lol, by the sounds of what’s her name, I wouldn’t care.
Sorry, but I don’t think what you described is tax fraud. Her other two kids may jolly well qualify as someone else’s dependent.
Yes that’s tax fraud, and yes you can report it to the IRS. She might or might not be telling you the truth of course – if she is, she’s really not very bright!
You’d have to give your name for the IRS to even consider doing any followup. But they aren’t going to tell her who reported her. Of course, if you’re the only one she told this to, she’d be able to figure it out – but if she’s telling you, she’s probably also telling other people.
Yes, this considered fraud on her as well as the other person claiming them on there taxes. The gov’t loves these cases. Below is a link to submit the problem.
That’s textbook Tax Fraud. Whether the IRS will act on the allegation is unknown but if it’s reported they might follow through with it. Normally the IRS wants information that includes evidence of Tax Fraud. Whether her hearsay claim that this is happening is sufficient evidence of fraud will be up to the IRS to decide.
You should have the kids’ SSNs on any old tax returns that your husband has copies of. He can also request a copy of one of the old returns from when he was married to her to get them if he doesn’t have any copies. There’s a $39.00 charge for that but it might be worth it.
If the IRS does come down on her she’ll probably figure out that you’re the ones who dropped the dime though the IRS won’t identify the source of their information. You can file an anonymous report or complaint but there may be less chance of the IRS acting on an anonymous one, can’t say for sure on that. If you do identify yourself you could be paid a bounty for any taxes that the IRS recovers. It’s been alleged that that will flag you for an audit but there’s no evidence that that is true, though a few folks have failed to claim the bounty as taxable income and got in a pickle with the IRS over that issue.
You can use this Form 3949-A to file the complaint: http://www.irs.gov/pub/irs-pdf/f3949a.pdf
Tax fraud to say the least. IF she’s caught, they can ban her from receiving EIC for 10 years. Of course, that defeats your purpose of trying to collect, but hey, you’ve done your civic duty. IF the IRS were able to recover anything based on the info you provided, there is a 10% finders fee! Go for it.
Also consider…….
Each state has it’s own rules, BUT……
In TN, Social Security Disability IS garnishable/assignable to you. SSI payments are not. 24 years ago, I had to inform the law office who provided the state services collecting back child support from dead-beat parents of this fact. The lawyer was none too happy with me "doing her job for her", but nonetheless, I obtained a judement and collected monthly for over 20 years. Social Security sent the check directly to me.
In TN, a judgement bears interest at the rate of 10% which meant instead of paying me $10,000, he actually had to pay me $10,000 plus the interest which nearly doubled the amount he ultimately owed.
It’s well worth asking an attorney. Remember, though, all states are different. Do your homework and go to see the atty armed with "chapter and verse" that says you can have this social security garnished/assigned. I realize this may sound cruel to many, but many social security recipients are far from disabled. They just want someone to take care of them. They made children, they need to be responsible for those children.
Be advised, though, there may be a statute of limitations for your state – so act quickly.
Good luck