Would I just have to pay it back??
2007-01-30 01:48:54 · 6 answers · asked by spotfree_1 2 in Business & Finance ➔ Taxes ➔ United States
Several things will happen.
1. You (and possibly your friend) will be barred from claiming the EITC for 10 years for filing a deliberately fraudulent EITC claim.
2. You (and possibly your friend) may be prosecuted for tax fraud or tax evasion. That will include VERY heavy files and possibly prison time.
3. You will have to pay back the money PLUS penalties and interest.
2007-01-30 01:57:44 · answer #1 · answered by Bostonian In MO 7 · 4⤊ 0⤋
When you do your return, you need to indicate, in addition to the child's name, date of birth, and SSN:
1. The relationship of the child to you.
2. How many months you lived with the child
If the child is not related to you, then the only way you could take the dependency exemption for the child is if you lived with the child for 12 months and supported the child. If you were able to claim the child, you would not receive the EIC for this child.
If the child is closely related to you (such as grandchild, niece or nephew), which you did not indicate, you must have lived with the child for more than six months in order to claim the child.
From your question, it seems that you would not be able to honestly add this child to your return. The IRS rules have tightened up a lot in the last few years, and returns are being examined because of fraudulent returns claiming the EIC.
Of course any refund the IRS determines you should not have received will need to be paid back, with penalties and interest. Once you have filed a questionable return, you may find any other items on the return questioned, and future returns scrutinized.
2007-01-30 02:01:52 · answer #2 · answered by ninasgramma 7 · 1⤊ 0⤋
They would audit you, make you pay back the money plus interest and could put you in jail. You can only claim your own children or relatives as dependents. I wouldn't mess with the IRS.
2007-01-30 01:56:53 · answer #3 · answered by Meg 2 · 1⤊ 0⤋
You can't claim someone else's kid. Good luck with a potential prison term for that.
2007-01-30 01:53:27 · answer #4 · answered by Strategic Sourcing Expert 4 · 0⤊ 0⤋
If they're feeling nice they might let the kid visit you in Prison.
2007-01-30 01:54:59 · answer #5 · answered by walter p 1 · 0⤊ 0⤋
pay it back plus intrest and fines, maybe jail time....
2007-01-30 01:52:36 · answer #6 · answered by harpseal1998 2 · 0⤊ 0⤋