2007-01-15 10:54:44 · 8 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
It depends on the situation. The other answers about how you will owe the money back plus interest is correct. It could take years for the bill to arrive which makes this a bad idea. You may think you got away with it when suddenly you get this large bill in the mail. Of course, you have to get caught. If no one else claims the same people, you may never get caught. I said, "may". If someone else does claim them, then everyone who claims the same person will have to send information to the IRS so they can decide who has the highest claim.
That is probably the worst that will happen. However, if you claim somebody you clearly have no right to claim at all (somebody that you never met nor supported nor is related to you), the IRS could consider it fraud and take you to court.
2007-01-15 11:31:13 · answer #1 · answered by TaxMan 5 · 1⤊ 0⤋
It depends. If you are also eligible to claim them, or had reasonable reason to think you were, but another person has priority, then the worst thing that happens is that you have to pay back whatever money you got by claiming them, plus interest.
If you deliberately claimed somebody you had no right to claim, then you could possibly be prosecuted.
2007-01-15 19:18:59 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
Normally, if you are a first time offender, you will just have your return rejected and have to fix it. But, if you keep doing it you could go to jail.
Remember, theres only a problem if more than one person claims that dependent. If its not your dependent, but youre the only one to claim them, its all good, the IRS doesnt care
2007-01-15 19:57:34 · answer #3 · answered by Michele 2 · 0⤊ 1⤋
worst case scenario...knowingly claim someone who you aren't entitled to claim. You'll owe interest and penalties on the exemption amount plus you could serve jail time. Not worth it for a piddly amount....
2007-01-15 19:25:50 · answer #4 · answered by digdowndeepnseattle 6 · 1⤊ 0⤋
You know the answer to the question. The worst thing that can happen is that you can be prosecuted for committing tax fraud. Does that happen often?...no. Can it happen?...yes
2007-01-15 21:57:47 · answer #5 · answered by taxman94066 2 · 1⤊ 0⤋
If your caught you will have to pay the money back plus interest and face possible jail time.
2007-01-15 19:00:24 · answer #6 · answered by Anonymous · 1⤊ 0⤋
you will have to pay the money back if not the IRS will take the nexts year federal tax
2007-01-15 18:59:31 · answer #7 · answered by cocochyna 2 · 0⤊ 0⤋
let's see you get to pay it back, plus all the fines, and then sit behind bars for a while
2007-01-15 19:02:43 · answer #8 · answered by spiritwalker 6 · 1⤊ 0⤋