Audrey A
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Will he go to jail? Doubtful. Will he owe the additional taxes plus interest and penalites? Yes.
Just goes to show you that if you don't do things the legal way you will get caught. |
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STEVEN F
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The IRS CAN press criminal charges for tax fraud. More likely, they will simply compute the tax he should have paid, add penalties and interest, and make his life a living h*** until they collect. The PRIMARY function of the IRS is as a collection agency. Throwing people in jail is generally not an effective collection technique. |
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v b
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To owe $2500, I bet he claimed HOH and EIC and called these kids his "nephews" or "stepchildren" which is fraud if he wasn't related to them by blood or marriage. Not only will he have to pay the money back, he'll be banned from getting EIC with kids for 10 years.
If the g/f and children had lived with him ALL year, he might have been able to qualify to claim them as qualifying relatives which could have saved him on income tax, but didn't qualify him for anything else. |
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ninasgramma
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If the children lived with him all year, had little or no income, and he supported them, it is possible that he could claim them as qualifying relatives. He could not claim them as qualifying children because they are not related to him.
To be dependents, the mother would also not have had to file a tax return. If this applies, your friend should see a tax preparer about responding to the audit based on the recent IRS rulings related to the situation.
It is unlikely that your friend will be charged with a crime or sent to jail. |
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Judy1
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No, he isn't going to jail, although he will have to pay back whatever tax he "saved" by claiming them, plus interest and possible penalties. |
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Grandpa
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Willl not likely go to jail will have to repay the amount and they will watch his return for about 5 years for any thing wrong he will owe that plus interest and penalties |
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Ms. Angel..
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IRS will not throw him in jail, but he will owe IRS. Hope he has money saved up to payoff IRS.
If the children were in school and used his address he can use their school records to proof they lived with him. Doctors records showing his address etc.
(Kids a baby goats) |
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Dave T
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if the IRS can prove that he knowingly claimed the children to defraud the government then Yes he could go to jail. It is more likely the IRS will if the return is audited just send him a notice asking for verification that he was entitled to claim the children. If he can not verify the deduction then the IRS will disallow the dependents and assess your friend the additional tax, penalties and interest. For many people this takes years to get paid off. The IRS could and does levy both wages and bank account to recover money owed to them. |
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