will she go to jail?

Question

my best friend's sister filed her nephew on her taxes without her sister's knowledge and got a refund when the sister filed her taxes and included her son, she was told that someone had already filed him. The I R S said they would investigate. What is the worst case scenario?

Answer 1

The sister gets a visit from a nice IRS agent, gets to pay a fairly hefty fine, and has to pay the difference in taxes, interest, and a penalty.

I doubt if they would go for a tax fraud charge, but if she's a total *****, I guess it could happen.

Answer 2

The IRS will investigate and uncover your best friend's sister's fraud. (Actually, this isn't worst-case so much as thoroughly likely.)

In the worst case (which is what you asked about), they'll prosecute her for fraud and she'll go to jail.

However, the worst case is unlikely in the extreme. Even so, it will cost her.

What is more likely to happen is that they will simply demand that she amend her tax return to remove the illicit deduction. And they will demand that she pay her back taxes plus penalties and interest.

She'd better start saving up.

Answer 3

Let's see. We have tax fraud being committed by one sister. This is a federal felony. It should be pretty obvious that if action is taken that prison time may be in play. Would get in contact with an attorney to explore all your options.

Answer 4

Probably a big fine and she'll definately have to pay the money back. Any kind of tax fraud can be punishable by jail time but not likely.

Answer 5

An audit on both of them, fines including penalties, return of the refund by whomever is found guilty - plus fines and interest.

Answer 6

Said person will be most likely audited or quite possibly be penialized, no jail. Most likely will have to pay back the money.

Answer 7

PRISON