what are the penalties for monetary theft?
a friend of mines offered to put my tax refund in her account and after a year it was said it was not deposited...after contacting the IRS I discovered it was deposited in her husbands savings account not shortly after we first filed my taxes! I was so shocked that it had been there all that time!
well she told me that his savings account was closed, which means my money has been spent. she doesnt want to give me my money now. I definitely cant afford it but, cant I take her to court? is there a penalty for monetary theft? Is this considered tax fruad? Cant I sue for that? Any helpful information about this situation will be greatly appreciated
Im so confused and dont know what to do.
2006-09-01 00:55:12 · 8 answers · asked by mistymorning119 2 in Business & Finance ➔ Taxes ➔ Other - Taxes
First of all, I assume you used the IRS's direct deposit program, meaning that instead of getting a check you had it directly deposited into her account. At the time you, or your tax preparer filled this out, you signed/digitally signed an agreement to have the funds transfered into this account. Because of this your friend was the legitimate bailor of your money (they legally had the money in the account).
The case you have, however, is not that she inapropriately defrauded you of the money. Instead what she did was EMBEZZEL your money, i.e."the fraudulent appropriation by a person to his own use of property or money entrusted to that person's care but owned by someone else." That is the criminal claim that can be filed against them. However, your going to have to prove that the person did not have a legitimate right to the money, which is difficult, because they can just claim that you owed them the money or gave it as a gift (unless you have a written agreement otherwise). This should be brought to the attention of the police, and as someone else stated, possibly the IRS (if you think they didn't report it).
Your civil action, meaning what you can sue them over, is the act of "conversion" (which essentially means stealing). You should be able to recover all that was stolen, plus interest, depending on what state/jurisdiction you are in. Once again, however, you are going to have to prove that the person did steal from you and that that did not have a legitimate claim on the money. You most likely will be able to file this claim in small claims court, depending on how much was stolen and the small claims limit is in your jurisdiction.
Sounds like a tough situation, hope that everything works out for you.
2006-09-01 08:19:53 · answer #1 · answered by Fulcrum777 2 · 1⤊ 0⤋
First of all, she's not your friend. How was she able to deposit it anywhere unless you were there to sign over the check? That sounds almost like forgery maybe. It's not tax fraud, it's just theft. Yes, you can sue her to get the money back. Unless you had something in writing thougn about how that money was yours and not a gift of some sort, then it might be hard to prove though like if she were to say that you gave them the money as a gift. YOu definitely need to contact the police or an attorney to see what your options are. I do hope you've realized that real friends don't steal.
2006-09-01 01:05:14 · answer #2 · answered by First Lady 7 · 0⤊ 0⤋
First of all, if you agreed to have the money deposited into your friends account, then it is not tax fraud. But you can sue her for the refund, court costs, and lawyer fees. Before you that, how much money are we taking about? If it is only $100 then I would just let it go. If it is thousands, then I would pursue it.
In the future, open up your own savings account for your deposits. Good Luck!
2006-09-03 03:57:27 · answer #3 · answered by AprilShowers 1 · 0⤊ 0⤋
If you endorsed the check to her and gave her permission to deposit the funds, there is no tax fraud, however the agreement that she would give the money to you allows you to take her to small claims court. It doesn't matter if the money got spent, it was your money and she acknowledges that you were supposed to get it. By all means, take her to court! Depending on the amount, you might ask your police department about criminal charges, but I can't say for sure they apply. The only way to find out is to ask. Maybe they'll do you a favor and place a call for you and scare the money out of her.
2006-09-01 01:20:00 · answer #4 · answered by misslabeled 7 · 0⤊ 0⤋
Call the cops, and also call the irs. The money they took from you is unreported income for them.
If all else fails, set her husband up with a hot girl with HIV and Clap.
2006-09-01 01:01:11 · answer #5 · answered by Anonymous · 0⤊ 0⤋
you can take her to small claims court with a recept from the irs and you will win but why did you wait a year
2006-09-01 01:01:23 · answer #6 · answered by reno_tony_casino 5 · 0⤊ 0⤋
Face it,she stold the money!
2006-09-01 00:56:29 · answer #7 · answered by Anonymous · 0⤊ 1⤋
I sure hope you learned something.
2006-09-01 01:23:33 · answer #8 · answered by Anonymous · 0⤊ 0⤋