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Breaking News: Prison Inmates LIE on Tax Returns.

guyver01

guyver01

Lifer
Shocked Smiley is Shocked! 😱

http://www.thedenverchannel.com/money/25978897/detail.html

WASHINGTON -- Nearly 50,000 prison inmates claimed more than $130 million in tax refunds this year without providing any wage information to the IRS, a government investigator says in a report to be released Thursday.


The Treasury inspector general for tax administration stops short of saying the refunds were fraudulently claimed. It does, however, say the Internal Revenue Service should investigate further.


The report is the latest in a series of audits looking at prison inmates claiming tax credits and other government payments. It notes that the IRS identified nearly 250,000 fraudulent tax returns during the 2010 filing season - a 50 percent increase over 2009 - preventing $1.48 billion in fraudulent refunds
 
I did taxes one year for H&R Block, second place I'd look is the head of household credit. I had a woman come in and claim she was head of household (she had children living with her) but when I asked if her husband had lived with her during the second 1/2 of the year she answered yes. I informed her that she did not qualify to file head of household at which time she then changed her story and told me that he didn't live with her at all.

I told her I couldn't do her taxes. Fucking people lie all the god damned time.
 
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JulesMaximus said:
I had a woman come in and claim she was head of household (she had children living with her) but when I asked if her husband had lived with her for more than 1/2 the year she answered yes. I informed her that she could not file head of household
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Color me stupid... but... why couldn't she file head of household if her husband lives with her?
 
guyver01 said:
Color me stupid... but... why couldn't she file head of household if her husband lives with her?
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She is married and he lived with her for the second half of the year.

By the way, I also worked with a woman who filed head of household, she was single and all she had living with her were her pets...🙄
 
guyver01 said:
Color me stupid... but... why couldn't she file head of household if her husband lives with her?
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One of the requirements of filing as an HoH is to be either 1) Unmarried 2) Legally separated or 3) Married but living apart for at least the last six months.
 
juiio said:
One of the requirements of filing as an HoH is to be either 1) Unmarried 2) Legally separated or 3) Married but living apart for at least the last six months.
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The other is that she has qualifying person living with her...which she did have (her children).
 
JulesMaximus said:
She is married and he lived with her for the second half of the year.

By the way, I also worked with a woman who filed head of household, she was single and all she had living with her were her pets...🙄
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So who does she list as dependents? The IRS' system should flag that immediately.

I guess I'm kind of confused how they were receiving refunds when they had no wages. What credit did they receive -- Making Work Pay? No wait, they can't. What taxes did they pay?
 
mwtgg said:
Earned Income Tax Credit. Key words: earned income. If you have no earned income, you cannot claim the credit. Furthermore, amounts received for work while in a penal institution are not considered earned income for the purposes of this credit.
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Maybe they're claiming some income which doesn't really exist in order to get the credit?
 
goog40 said:
Maybe they're claiming some income which doesn't really exist in order to get the credit?
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Which boggles my mind how the IRS can only catch 98% of it. Should be rather straight-forward to substantiate a vast majority of the income claimed.
 
mwtgg said:
So who does she list as dependents? The IRS' system should flag that immediately.

I guess I'm kind of confused how they were receiving refunds when they had no wages. What credit did they receive -- Making Work Pay? No wait, they can't. What taxes did they pay?
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I have no fucking idea. She has an "accountant" who prepares her taxes every year and she claimed that he's had her filing as head of household for years and she's never been audited. I told her there's no way she qualifies for that filing status and that if the IRS ever audits her she'll have to pay all that money back plus penalties...she wouldn't listen to me though.
 
JulesMaximus said:
I have no fucking idea. She has an "accountant" who prepares her taxes every year and she claimed that he's had her filing as head of household for years and she's never been audited. I told her there's no way she qualifies for that filing status and that if the IRS ever audits her she'll have to pay all that money back plus penalties...she wouldn't listen to me though.
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Those type of shenanigans make me wonder why the IRS now requires PTIN's for all preparers when they're clearly not enforcing the rules currently.
 
mwtgg said:
Those type of shenanigans make me wonder why the IRS now requires PTIN's for all preparers when they're clearly not enforcing the rules currently.
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Well, this woman worked in Document Control at a company I used to work for...they aren't exactly splittin' the atom in those positions. Some drunk she met at a bar probably told her he was an accountant and that he could get her a big refund on her taxes if she paid him $xxx.xx every year. Who the hell knows. I stopped trying to figure these things out years ago. 😛
 
JulesMaximus said:
I have no fucking idea. She has an "accountant" who prepares her taxes every year and she claimed that he's had her filing as head of household for years and she's never been audited. I told her there's no way she qualifies for that filing status and that if the IRS ever audits her she'll have to pay all that money back plus penalties...she wouldn't listen to me though.
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could they have been divorced? not sure how that works, but wouldn't married filing jointly give her a bigger benefit than HoH?

and I file HoH 'cause my kids do live with me.
 
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dawp said:
could they have been divorced? not sure how that works, but wouldn't married filing jointly give her a bigger benefit than HoH?

and I file HoH 'cause my kids do live with me.
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They weren't divorced. And no, MFJ does not give a bigger benefit than HoH.

Are you married?
 
guyver01 said:
Shocked Smiley is Shocked! 😱

http://www.thedenverchannel.com/money/25978897/detail.html

WASHINGTON -- Nearly 50,000 prison inmates claimed more than $130 million in tax refunds this year without providing any wage information to the IRS, a government investigator says in a report to be released Thursday.


The Treasury inspector general for tax administration stops short of saying the refunds were fraudulently claimed. It does, however, say the Internal Revenue Service should investigate further.


The report is the latest in a series of audits looking at prison inmates claiming tax credits and other government payments. It notes that the IRS identified nearly 250,000 fraudulent tax returns during the 2010 filing season - a 50 percent increase over 2009 - preventing $1.48 billion in fraudulent refunds
Click to expand...

Holy shit. 😱
 
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