tax fraud...?

Question

if two people claim the same person(on taxes), what happens to the other person who you know is wrongfull of doing so? jail...or wat?

Answer 1

you and the person who claimed the dependant will receive a letter stating that 2 people used the dependants social security number, They will ask that both partys submit proof of who was actually eligible to claim the dependant. This can include school records, Dr records, copy of a lease agreement acknowledging that the child lives at the address of record.
The IRS will make a determination of who actually qualifies to claim the dependant. The person who claimed the dependant will then owe back any refund they received in error plus interest and penalties. This also raise a red flag on that persons future tax returns for up to the next 10 years.
Calll the IRS at 1-800-829-1040
Respond to any correspondence from the IRS immediately to expedite your claim.
This will cause a delay in processing your return and your refund

Answer 2

Sending you to jail is the last thing the IRS wants. While you are sitting in jail, the taxpayers are paying for your incarceration, and you cannot pay back the taxes you owe.

If the IRS changes your tax liability and you end up owing more tax, then they will assess interest and penalties, if the assessment is done after the original due date of your return. Interest is calculated at the federal annual interest rate. Penalties are calculated at 5% of the tax due per month, up to a maximum of 25% of the tax due. However, if the IRS deems your omission as intentional and deliberate, such as tax evasion, they can charge penalties that amount up to 100% of the tax due.

Answer 3

Only one person can legally claim the same person as a deduction. If someone deliberately claims someone whom they know they are not legally entitled, there could be repercussions. If it was a mistake, there may not be anything but fines, penalties and additional tax. If it was fraud, then jail time could happen. You are dealing with a Federal document. You sign it based upon it being accurate. If you knowingly sign such a document knowing that statements are false, then there will likely be repercussions.

Answer 4

Normally what will happen is that both people will be asked to prove that they are the one who is eligible to claim the dependent, and the one who isn't will have their claim disallowed and have to pay back the money with interest and possible penalties. It would be highly unusual that that person would be jailed over something like this.