I know someone who has said they made more than they did to get a bigger EIC tax refund. This person has an otherwise spotless criminal record, and is a single mom of two kids. She wants to come clean about it, but is afraid of the consequences. She did it to help her family, not just for personal gain.
2007-07-02 07:47:02 · 9 answers · asked by freckles84403 2 in Business & Finance ➔ Taxes ➔ United States
A person who misstated her income can amend her return. If she received too large a refund, she will pay back the difference.
It is tax fraud, and the IRS could assess a penalty and interest on the money that was refunded in error.
2007-07-02 08:26:58 · answer #1 · answered by ninasgramma 7 · 0⤊ 0⤋
She'll have to pay back whatever extra she got, plus interest and most likely penalties. She could be barred from getting EIC at all for the next several years. What she did was tax fraud, and she could be prosecuted for it but probably would not be, especially if she turns herself in on this.
A lot of EIC claims are being investigated this year, so there is a significant chance she'll be asked to prove the additional income, and therefore get caught.
If she just files an amended return and pays back the extra, probably nothing further would happen.
2007-07-02 08:39:51 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
Good answer from Judy, but I suggest she not "turn herself in", but rather just file a 1040X to amend the return, and pay what is due. In the explanation on the 1040X say something like "Erroneously entered the wrong amount of income".
The IRS will probably send a bill for interest , but that will probably be the end of it.
2007-07-02 08:58:20 · answer #3 · answered by r_kav 4 · 1⤊ 0⤋
It can't be good, lying to the federal government is a big deal! I feel if your willing to lie, no matter what the circumstances, you should be willing to accept the consequences!
2007-07-02 07:57:12 · answer #4 · answered by j c 5 · 0⤊ 0⤋
Just leave it be. But the next time, don't do anything stupid. I was a bill collector for 35 years, and I have this saying" IF YOU'RE GONNA BE A THIEF, MAKE SURE YOU CAN RETIRE FROM IT".
2007-07-02 08:23:23 · answer #5 · answered by Anonymous · 1⤊ 1⤋
If you intentionally commit fraud, the penalty is up to 100%.
2007-07-02 08:01:07 · answer #6 · answered by cashmaker81 6 · 0⤊ 0⤋
the answer to your question varies--
check out the link below
(any way you look at it -it's a BAD idea / regardless of why you did it)
http://www.irs.gov/compliance/enforcement/article/0,,id=163019,00.html
2007-07-02 08:23:54 · answer #7 · answered by mother 2 · 0⤊ 0⤋
That constitutes fraud.
Depending on where you live, it could mean imprisonment, or in other cases, a hefty fine.
2007-07-02 07:51:51 · answer #8 · answered by Trey 3 · 0⤊ 2⤋
death.
2007-07-02 07:50:52 · answer #9 · answered by Anonymous · 0⤊ 4⤋