Tax fraud

[Amanda]

Question: a woman I know claimed her 17 year old daughter and her daughters 1 year old son in order to claim EITC. Now, these kids do not and did not live with her the whatsoever in 2020. The 17 year old maintains a residence with her boyfriend (who claims the infant for SNAP and Medicaid purposes). The 17 year old made approximately $12,000 last year and will file her own individual return, not claiming any credits. What are the chances of the IRS catching this fraudulent activity. I have considered reporting it to the IRS, but I thought maybe some of you would have some insight on whether the IRS will catch it on their own.

[Tiffg]

Is this one of those hypothesis situations where the friend is actually you? LOL jk

[Chloe]

And finally, I read what the first person said and that’s incorrect. You CAN file a return and be claimed as a dependent on a separate return. So it is whether or not the 17 year old backs up her mom or says anyone else can claim her and if they in fact do.

[Chloe]

Btw, I answered your question, but I’d like to add: Idk why you want to be involved, but with things like what you describe, it’s best to stay out of it unless say, these kids are your dependents and it affects your finances or the 17 year old needs help and asked you and should be actually receiving the credits.

[Chloe]

(PART 2 OF 2) I say they may take a closer look if she did not claim them last year because I claimed my son the first year of his life (no problem) and then his father manipulated the system and got custody of him for a time the following year. Did not claim him then. Got sole custody back and claimed him last year, the IRS did take a closer look but I got what was due in end.

[Chloe]

(PART 1 OF 2) If the 17 year old files and puts her address as her mother’s and states someone else can claim her as a dependent, unless someone other than this woman you speak of claims these dependents; it’s unlikely it will flag the IRS system.

That said, if this woman did NOT claim them last year, without the above discrepancies flagging it, the IRS may take a closer look

[Alyssa Mai]

That’s the reason for the path wait. Is to weeded out fraudulent claiming

[mgibson897]

If mom claims her and then she goes to file a tax return for herself bc she made 12000 it will get flagged by the irs bc she can’t be claimed as a dependent and file her own return.

[Author]

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