I filed a tax return using my friends children now the IRS wants that money back?

Question

I got $6000.00 back from my 06 return cause a friend let me claim her 2 kids. I think that she told this to the IRS and now they want me to pay all that money back. I split it down the middle with her. She was right there at Jackson Hewitt when i claimed them on my taxes. The preparer asked me my relation to the children and i told her "other" she told me that she was going to put that i was their aunt so i could get more money, I was uneasy about it but i agreed. What can i do now? I don't have $6000.00 to give them by the end of this week

Me and the girl are no longer friends. Is there anyway she can be held accountable for her role in this?

Answer 1

Well, since you got half the money, $3,000 you better have that, since you have committed tax fraud, hopefully your friend has her $3,000 cause she's in the tax fraud as well. As for Jackson Hewitt, I heard earlier in the year that the IRS was trying to shut down 125 Jackson Hewitt offices in 4 states that were all franchises of one person because of tax frauds committed. The states were, Georgia, Illinois, Michigan, and North Carolina. You live in one of those states? If so, don't count on getting money back from them for the tax prep fee, the phone number might be disconnected.

By the way, as far as the previous answerers go, the IRS doesn't really play nice when tax fraud is concerned. You had better cough up the $6,000 ASAP and they'll also hit you with penalties and interest, and they're not going to be in the mood to negotiate on those since tax fraud is involved.

Sure she can be held accountable just like you. After all, she participated in this fraud just like you did. And if there's anything in writing from her that confirms her role in the fraud then that's proof that she was actively involved in it.

Answer 2

Ignore the person talking about the 1040X-they did not read your question correctly. Since your electronic return was rejected, you are considered having not filed. You must file now by paper. The IRS will tell you whicjh of your twins caused the problem. As to what will happen next, it depends on why your child's social security number was used on another return. Sometimes the other person just made a mistake and put in a wrong number that just happens to correspond with your child's. The IRS was fix this quickly on their own. But if it is someone like the child's father that claimed them, this wil take longer. This may also involve a request to you for more information to prove your right to claim the child.

Answer 3

You need to go to the owner of the Jackson Hewitt franchise and let them know of the preparer who did this: they need to know if your accusation is True.
First you conspired to commit fraud with your "friend", and now you are including the preparer as part of this conspiracy. I hope you are not accusing her falsely, because that is a big deal. You had to answer a lot more questions than your relationship, you had to answer if you provided a home for those children over half the year, you had to give that preparer the social security numbers, and at the end of it all, you had to sign under the penalty, that the tax return was true and all of the information is true.
It sounds like you got caught making a lot of money off of tax payers and now you are trying to blame everyone but yourself......

Jackson Hewitt, H & R Block and every other tax business is going to have good and bad preparers.

You don't have to get an attorney, you can do a Offer of Compromise and possibly get a reduction of that amount...ask the agent you speak to when you call them regarding your notice.

Your 'friend' if she was on welfare, can be sanctioned from Food Stamps, Public Aide and Housing for up to 10 years for this type of fraud.

Answer 4

Well, you lied on your return and claimed those children illegally and got caught - of course you have to pay back the money, what did you expect? The Jackson Hewitt person should be fired for what she did, but that doesn't change your liability to the IRS - YOU were the one who got the money, so YOU have to pay it back. And the fact that you gave half of the money to your former friend becomes YOUR problem, not the IRS's. Sure, she should pay you back for what you gave her, but the IRS didn't give it to her, so they aren't going to go after her for the money. And since it's just your word against hers, even if they guess that you are telling the truth, they really can't and won't do anything to her for her part in this.

What can you do? Set up a payment plan to pay back the $6000 that you essentially stole, and just be glad if you don't get prosecuted for tax fraud.

Answer 5

You were in violation of the Federal Tax Code (see Publication 217, Earned Income Tax Credit) and you will be lucky not to be prosecuted. It matters not if your friend reported you. I can tell you exactly how you got caught.

The Earned Income Tax Credite (EIC) is calculated by the age of the child(ren) that you claim. By signing the Tax 1040 "Return" you agreed that all of the information that was given was correct and true. In the EIC there is a "Qualification Flow Chart" and you have to agree that many of these:
* They cannot be claimed by anyone else
* They are in your home for the last 12 months
* You provided for them

and many more. By entering the child(ren)s Social Security Number in the Tax Return, this is how the Audit on the IRS' part flagged your Return. I am sure that you did a Rapid Refund and received your money "fast."

Be the responsible person...pay them their money and rest assured they WILL NOT allow you to claim the EIC for the next SEVEN Years. This is serious, you will be lucky if they do not take you to Federal Court. This is a violation that is punishable by 10 Years Federal.

Sorry to hear that you made a bad choice. I wish you the best of luck. By the way, you not your friend is responsible for the whole amount, plus any tax owed by you for this mis-representation, plus any interest, plus said interest grows yearly, and finally...They post it on your Credit Report and they pull your ability to gain or keep a Visa or Passport until it is paid.

Answer 6

lawyer,, the 6000.00 aint gonna be nothing in a couple of years, you will be able to triple that from penalties an interest. Basically your in deep doodoo. But a lawyer can at least stop the penalties for ya. then set up a payment plan, maybe those kids can mow some yards to help pay.

Answer 7

If at this point all you have is a letter disallowing the children, I would send it back by the deadline and attach the Installment Agreement form that you can print from irs.gov. If all you have is a letter it tells me they are not pursuing fraud; they just want the tax you owe. If the deadline is passed, at least call and explain what you are doing. Otherwise a lien will be filed and they will pursue further collection action.

Answer 8

Obviously the IRS knows you don't have kids. You don't get a tax break for having nieces or nephews. Tell her she owes you the $3000 back that she got.

Answer 9

Get an attorney. I am not as worried about the $6,000.00 as possible other problems you might have. If you pay, you admit you've engaged in wrong doing. You are not going to get out of paying the tax liability.

Answer 10

You definitely need a lawyer.
You definitely need to get 3 more jobs, seriously, now . work until u can't then get up and work some more. if u are lucky and the lawyer good this might only cost u 12K$.