I went to do my taxes and this lady showed me a chart where if you adjust your deductions you get more for a refund (only an income of 12K-17K . This is illegal. I wanted to find out more about it before I get myself into trouble. Does anyone know what this is?
2007-03-22 11:04:06 · 6 answers · asked by angel_lillian001 2 in Business & Finance ➔ Taxes ➔ United States
Claiming a deduction for something you either didn't pay or didn't have basis to deduct is tax fraud/evasion.
I don't know the chart, but if you don't feel comfortable about it certainly don't let her sign off on your tax return. Remember, you are ultimately responsible for what goes on your return.
Best of luck.
2007-03-22 11:58:10 · answer #1 · answered by Molly 6 · 3⤊ 1⤋
If you mean that she is showing you that you can claim fewer allowances on your W-4 and have more taken out of your paycheck, and that this will give you a higher refund, well, sure it will, when you file your return, you'll get back everything you overpaid. It's perfectly legal to have extra withheld over what you'll owe in taxes - you're lending your money to the government at no interest if you do that though.
If you mean that she's saying you should claim deductions on your return that you're not entitled to, that's a major problem and yes would be illegal. If you claim deductions that you aren't entitled to, you are filing a fraudulent tax return and can be subject to serious penalties.
If a tax preparer is suggesting this, then she is not only acting unethically but also illegally. When she gets caught at it, and she will, she will be in serious trouble, and returns that have been prepared by her will be subject to extra IRS scrutiny.
Take your return somewhere else to be prepared. You should really also report her to the IRS.
2007-03-22 13:30:15 · answer #2 · answered by Judy 7 · 2⤊ 0⤋
The chart isn't pretend! There are merely 2 charts circling around. One is from 4/2011 and the different is from 11/2011 (it’s merely an as much as date version of the 4/2011 chart and is the main magnificent one that we would desire to consistently be referencing). yet extremely does it count? If there are 500 questions approximately right here approximately human beings not getting their refunds right this moment then neither chart is right. It’s merely waiting sport at this element. regrettably every physique is calling for for any form of solutions and grasping for straws. The IRS revealed a PROJECTED pay out chart and we so stupidly (sarcasm) believed it.
2016-11-27 23:21:49 · answer #3 · answered by Anonymous · 0⤊ 0⤋
If you mean adjusting your W-4, it is legal as long as your total withholding is at least 90% of your tax liability or your under-withholding is less than $1000. That said, ANY refund means you gave the IRS too much money to begin with. If you complete your W-4 to give you LESS refund, you get more money in each check. If you mean claiming deductions on your 1040 that you are not entitled to, that is illegal.
2007-03-22 12:33:55 · answer #4 · answered by STEVEN F 7 · 1⤊ 0⤋
IRS pub. 17, pg. 37
You may have to pay a penalty of $500 if both of the following apply.
You make statements or claim withholding allowances on your W-4 that reduce the amount of tax withheld.
You have no reasonable basis for those statements or allowances at the time you prepare your W-4 form.
There is also a criminal penalty for willfully supplying false or fraudulent info on your W-4 or for willfully failing to supply info that would increase the amt. withheld. The penalty upon conviction can either be a fine up to $1000 or 1yr. in the Po,Po.
As to falsifying ANYTHING on a return that is definitely illegal!!!
2007-03-23 03:40:13 · answer #5 · answered by momzadork 3 · 0⤊ 1⤋
What do you mean by "adjusting" your deductions?
2007-03-22 11:19:14 · answer #6 · answered by barbara 2 · 0⤊ 0⤋