U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics > Personal Finance
 [Register]
Please register to participate in our discussions with 1.5 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Jump to a detailed profile or search
site with Google Custom Search

Search Forums  (Advanced)
Business Search - 14 Million verified businesses
Search for:  near: 
Reply Start New Thread
 
Old 02-01-2011, 04:10 PM
 
Location: Baltimore
1,749 posts, read 4,111,625 times
Reputation: 1595
Quote:
Originally Posted by streetkings01 View Post
See these are the answers I hate......I tell you he got a credit and you tell me he didn't! He got the money, his wife got the money and a friend of his got the money. I have no idea what forms he used, but all I know is they all got between $48K-$55K. They have the cars to show for it.........one purchased a $25K Tahoe and the wife a $20K Charger cash. I pretty much got my answer that they will have to pay the money back. The IRS already hit them both with a $5000 penalty and they paid that penalty with some of the money they got on their return.

Try google sometimes yourself bro......you'll see quite a few cases where people have claimed this credit and the government has mistakenly issued refund checks, but I have yet to find a case where the people who the checks were issued to were actually punished......it always says that the preparer was punished, but never the tax payer. I even saw one case where a women received $500K from the credit, but was only caught by the IRS when she tried to do it again the next year.
If it's determined that the preparer instigated the false return and the taxpayer was duped into filing it, then yes, it will most likely be the preparer who goes to jail. But whether the taxpayer was aware of the fraud or not, he or she will be the one who has to pay the taxes back, along with interest and penalties. And the chances are good that the IRS will catch up with your family member. If this was last year's return, he will hear from them next year or the year after, and by that time the interest will be substantial. Most returns are processed as filed and then reviewed on the back end unless there is a math error or some other entry that flags it as needing a closer look. Just because you get your refund doesn't mean you're home free.
Reply With Quote Quick reply to this message

 
Old 02-01-2011, 04:36 PM
 
71 posts, read 307,169 times
Reputation: 81
Quote:
Originally Posted by broadbill View Post
No need to get all butt-hurt over it. The first thing that comes up when you google it is that its clearly a scam. I'm not sure how you missed this.

To be honest I was making silly comments because I thought you were trolling/scamming/spamming something yourself. There is also of people out there who come on this board and their first post is some sort of crap like this.

So if you were truly asking a Legitimate question....no, you can't claim a 48K phony tax credit and expect the IRS to only fine you 5K and let you keep the rest. Yes, you will have to pay the IRS back if you claim ANY deduction/credit that you don't deserve (and they catch it). Finally, I don't want to call your family member a liar, but there is almost no chance that they pulled off this sort of thing. The IRS just doesn't "miss" 48K-sized tax deduction/credits.
Well if they dont then they did this time.......3x at that! He pulled it off and like I said many times before.......purchased himself a truck and his wife bought a car cash! You dont have to believe it, but I'm telling you they deposited the money right into their bank accounts.
Reply With Quote Quick reply to this message
 
Old 02-01-2011, 04:59 PM
 
Location: Pasadena, CA
1,028 posts, read 1,743,041 times
Reputation: 731
Quote:
Originally Posted by streetkings01 View Post
Well if they dont then they did this time.......3x at that! He pulled it off and like I said many times before.......purchased himself a truck and his wife bought a car cash! You dont have to believe it, but I'm telling you they deposited the money right into their bank accounts.
just wait til the gov't wants interest and principle on 150k
hope they enjoy that
Reply With Quote Quick reply to this message
 
Old 02-01-2011, 05:41 PM
 
Location: The South
767 posts, read 1,230,414 times
Reputation: 663
Quote:
Originally Posted by streetkings01 View Post
Well if they dont then they did this time.......3x at that! He pulled it off and like I said many times before.......purchased himself a truck and his wife bought a car cash! You dont have to believe it, but I'm telling you they deposited the money right into their bank accounts.
You are never going to know till you try it.
Reply With Quote Quick reply to this message
 
Old 02-01-2011, 05:59 PM
 
Location: Darlington, SC
2,350 posts, read 3,260,975 times
Reputation: 1950
Ask Wesley Snipes about that. They will be paying back that money forever
Reply With Quote Quick reply to this message
 
Old 02-01-2011, 06:20 PM
 
237 posts, read 187,855 times
Reputation: 279
Quote:
Originally Posted by streetkings01 View Post
I'm just curious how the IRS goes about getting the money back. It's been a year now and nothing has been sent to them......I was thinking maybe the IRS waits till you file a return the next year and "BAM" they hit you with it. My main purpose of asking this question is my uncle brought this to me and few other family members attention and I stated my case to them why I wouldn't do it, but he's basically telling them that he's living proof that it works and no consequences from filing it will take place other than paying the $5K penalty. I just dont want to see other family members ruined by an idiot family member who by the way......wants a cut from the proceeds.
The credit is a scam, yes erroneous payments were made in the past. But with a revenue ruling issued, the service is definitely on high alert.

Have him show you that "audit letter". It's going to demand more than just a $5K penalty. The service need not, and will not, wait until you file a return the next year. They can issue a notice with the correction anytime.

Remedies for lack of payment include liens and property seizures. This includes wages, bank accounts, state/fed income tax refunds, inheritances, and Social Security benefits.
Reply With Quote Quick reply to this message
 
Old 02-01-2011, 06:37 PM
 
20,804 posts, read 29,215,249 times
Reputation: 9763
Quote:
Originally Posted by IonRedline08 View Post
I've heard of that.

It's on the 1040WTF form. It's right under the Nerdy White Guy with Glasses Credit.
Dang I missed that one on our taxes this year...
Reply With Quote Quick reply to this message
 
Old 02-01-2011, 06:45 PM
 
229 posts, read 285,206 times
Reputation: 159
Messing with the IRS is scary! I was audited once, right after the child care deduction was added. There was a firm that did taxes for free for low income people (which I was at that time) but I thought the refund amount was way out of line as I usually got 500 or so and this was 1500, a lot of money then, so I just kept the excess in the bank. Sure enough, I was audited and they'd made errors and because I had kept it, I was able to give it right back, which meant there were no penalties. What a disaster it could have been if I hadn't gone with gut instincts! The auditer was pretty understanding though. Didn't blame me and was actually very nice.
Reply With Quote Quick reply to this message
 
Old 02-02-2011, 06:16 AM
 
1,392 posts, read 1,865,854 times
Reputation: 1249
Quote:
Originally Posted by streetkings01 View Post
Well if they dont then they did this time.......3x at that! He pulled it off and like I said many times before.......purchased himself a truck and his wife bought a car cash! You dont have to believe it, but I'm telling you they deposited the money right into their bank accounts.
You can believe what you want to believe. The fact of the matter is that the "Slave Reparation Credit" is a known scam and the IRS knows about it, despite paying out claims initially. I really like to hear how your family members were able to claim this and not get caught.
Reply With Quote Quick reply to this message
 
Old 02-02-2011, 07:20 AM
 
71 posts, read 307,169 times
Reputation: 81
Quote:
Originally Posted by broadbill View Post
You can believe what you want to believe. The fact of the matter is that the "Slave Reparation Credit" is a known scam and the IRS knows about it, despite paying out claims initially. I really like to hear how your family members were able to claim this and not get caught.
He pretty much said he used some type of forms that he wont tell me about(dont care to know anyway) and did it online. I have no idea what he put down or what.....but I do know he was issued a refund from the IRS in the amount of $48-$55K which he used to purchase a vehicle. The IRS hit him with a $5K penalty and he told me that after paying the penalty the whole thing was over and done with. I'm just telling you what he and a couple others told me and I dont know that part for sure, but one thing that I'm 100% certain of is they all got refunds from the IRS in the amounts of $48-$55K and I dont plan on explaining this anymore!
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $79,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics > Personal Finance

All times are GMT -6.

2005-2014, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25 - Top