Tax Fraud
People will do anything to get a higher tax return, but the problem is they don't understand that what goes around comes around. I've had several clients that have been questionable. The first girl looked quite old, but turned out to be 18. She made less than $2000 for the year and wanted to claim head of household. I don't mind helping people out, but it's hard to help when i'm being lied to. She said that she had a daughter who was 4, but when she gave a birth date the computer said she was 2 at the end of 2006. She just excused it away as a mishap. However, after transmitting her return to the IRS and calling her to tell her that it was rejected she had to ask someone in the background what her "daughters" birthdate was. She didn't come back in to get it corrected.
My second suspicious client was a gentleman who said that he wanted to claim head of household but lived with his mother. I asked him if he paid any rent and after catching on to what I was saying he remembered that he paid her rent. Yeah right. He was unemployed and only had a little over $4000 in income last year and he was claiming his son and his sister. WTF? You can't tell me that you provided support for two people on $4000 in income, but I didn't question him. I simply let him know that if the IRS wanted to audit him he would be liable for the money that he got.
My third suspicios client wised up and decided to pay for our peace of mind service that pays up to $5000 in taxes if he forgot anything or if I made an error. He stated that he and his wife had been separated last year. I asked him what he meanty by separated--did they still live together and if not who moved out and when? Apparently, he's been through this conversation before because he knew enough to tell me that he moved in June which would be right around the cut off time for him to be able to file head of household with one of his sons. Later on in the tax preparation he said that he and his wife filed head of household for the last two years. My question was if he and his wife was separated in June 2006 how could they have each filed head of household for the previous two years. Something was a little fishy, but he said that they were together off and on. So of course he paid to cover his butt because he already owes $1200 from 2004.
I belive that if you are going to try to evade the IRS please know how to do that. Apparently my third client was the most knowledgeable, but even then I see so many people who are being audited and are being required to provide proof of what they want to claim on their tax return. I've seen too many people be audited and have to pay back money that was refunded to them. I try to tell my uncle and even Terrance that trying to find children to claim is a bad idea, but they don't understand.
My second suspicious client was a gentleman who said that he wanted to claim head of household but lived with his mother. I asked him if he paid any rent and after catching on to what I was saying he remembered that he paid her rent. Yeah right. He was unemployed and only had a little over $4000 in income last year and he was claiming his son and his sister. WTF? You can't tell me that you provided support for two people on $4000 in income, but I didn't question him. I simply let him know that if the IRS wanted to audit him he would be liable for the money that he got.
My third suspicios client wised up and decided to pay for our peace of mind service that pays up to $5000 in taxes if he forgot anything or if I made an error. He stated that he and his wife had been separated last year. I asked him what he meanty by separated--did they still live together and if not who moved out and when? Apparently, he's been through this conversation before because he knew enough to tell me that he moved in June which would be right around the cut off time for him to be able to file head of household with one of his sons. Later on in the tax preparation he said that he and his wife filed head of household for the last two years. My question was if he and his wife was separated in June 2006 how could they have each filed head of household for the previous two years. Something was a little fishy, but he said that they were together off and on. So of course he paid to cover his butt because he already owes $1200 from 2004.
I belive that if you are going to try to evade the IRS please know how to do that. Apparently my third client was the most knowledgeable, but even then I see so many people who are being audited and are being required to provide proof of what they want to claim on their tax return. I've seen too many people be audited and have to pay back money that was refunded to them. I try to tell my uncle and even Terrance that trying to find children to claim is a bad idea, but they don't understand.
This entry was posted
on Wednesday, January 24, 2007 at 6:37 PM.
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