Discussion:EIC- AMEND
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| 27 June 2007 | |
| Hope everyone had a good tax season. I am still doing extensions. I have a client who is not married and has a child. Last year he & his lady friend had some problems. She filed her return as head of household and claimed 2 children, one of which is my client's. Here income on the return was less than $600. She recevied EIC for both children. No taxabile income,thus no child tax credit. I want to file him as single (not head of household because he may not have had a home at tha time). I,also, want to amend her return to eliminate this one child. She will be returning $ 34 to the government for EIC. What problem will I run into to do this, if any. He will save over $ 1500 in taxes. Thank you | |
| 27 June 2007 | |
| You would think the IRS would question how someone with only $600 a year income could support herself and 2 children. No wonder there is so much fraud going on - no one is policing it. Who was the lying fraudulent preparer who did her tax return? | |
| 27 June 2007 | |
| kevin you are tough.
Maybe she won the lottery a couple years ago and is living off her savings which are in non-interest bearing accounts. :) | |
| 27 June 2007 | |
| Also, it isn't unreasonable that her 'significant other' worked and paid all of the bills. I run into that all the time. | |
| 27 June 2007 | |
| Thanks for the input. Cannot say who prepared, but a national preparer servicedid it. I want to amend her return and take away one child. Question is, Will I have trouble with the IRS. The father can claim the dependent and did support her. Does anyone have any experiance with the IRS in case of EIC taken incorrectly. | |
| 27 June 2007 | |
| I haven't had any experience with it, but I would think an amended return should cause no problems. Of course, if the IRS had come knocking first it would be a different story.
Like BethAZ, I also see situations which appear to be EIC fraud on their face, but when checking the regs I find they are legal situations. In fact, had one of my client's children this year been 2 years older I could have changed around a dependent and gotten the child a big EIC. That's despite the fact the parents had very high income and were phasing-out on exemptions. Its certainly not what the EIC is intended for, but it still would have been legal. | |
| 27 June 2007 | |
| I sincerely wish that congress would take welfare out of taxation. | |
Bottom Line (talk|edits) said: | 28 June 2007 |
| Amen. And stop trying to make social policy through the tax code. | |
| 28 June 2007 | |
| You always run the risk of the amended return hitting a TCO or RA's desk. | |
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