The Federal Tax Credits Blog

Posts Tagged ‘fraud’

Question: Would you like cash to be abolished?

http://www.bbc.co.uk/news/world-europe-10538032

In this BBC article, it is reported that Sweden is steadily phasing out cash, as more and more people use only debit or credit cards. Ex ABBA member Bjorn Ulvaeus says he sees no practical reasons to have coins or banknotes.

How would you like to live without cash, and what are the pros and cons? What about the chance to cut crime? Some financial crimes may vanish with no cash – certain people don’t want a trail of electronic evidence. We could see what people have earned, so no tax fraud. But what about paying for certain things like the services of tradesmen, taxis, etc. Would you like cash abolished, or is it just madness?

Answer: It would not work.

People in the black economy would switch to using other means or items of value to barter and or exchange, creating more problems than exist already – like prohibition it would create a new criminal industry.

Better to allow the people to choose cashlessness that force it upon them, in time it may well happen, but not yet

Organized Crime in Charge of EU Carbon Trade, Europol Says

Question: Feel like I am committing tax fraud?

Ok, so I was doing my taxes. I made around 30k. After deducting head of household, the eic and the child tax credit I am getting a refund. I feel like I am doing something wrong because it’s like I got tax credits 3 different times for the same 2 kids. Am I doing something wrong? The head of household gave me a larger deduction, then I get deduction for the eic and then there is a child tax credit…is this right??
Oh my goodness, I calculated my eic for 2 children at 1630. someone below said it is about 500 each per child. What did I do wrong???

Answer: dont forget the additional child tax credit !! it sounds right

Patrick’s pragmatism

A progressive Democrat, Governor Deval Patrick took office with a vision that did not include making painful budget cuts.

www.fakepaycheckstubs.com

If it feels like your tax refund’s poky, you’re not alone

At a time when many people need their refunds to pay the bills, some taxpayers’ federal tax refunds have been delayed. Here are some reasons.

Forensic Loan Audit

Question: What’s the punishment for benefit fraud ?

What would be the punishment for benefit fraud amounting to about £20,000 ??
Ex paying rent and using housing benefit payment for ease as maintenance for bills and food – takes them over the £20 a week threshold for receiving IS.
Receiving working tax credits for 10 months whilst not working, although was used to pay for child care.

What is the procedure once reported?

Thankyou x

Answer: These are the current guidelines on your question.
Benefit fraud
These offences involved the dishonest abstraction of taxpayers’ money, and were not to be treated lightly. However, it should be borne in mind that the crimes are non-violent, non-sexual and non-frightening.
The Court suggested that for average offenders it is advisable to enquire how the Department proposes to recover the loss. The procedure for such a high amount of benefit fraud will be prosecution with possible imprisonment and recovery of overpaid money
Considerations that might affect sentence

1. A guilty plea
2. The amount involved and the length of time over which the defalcations were persisted in (bearing in mind that a large total might in fact represent a very small weekly amount)
3. The circumstances in which the offences began (there was a plain difference between a legitimate claim which became false owing to a change of situation and, on the other hand, a claim that is false from the very beginning)
4. The use to which the money was put (the provision of household necessities was more venial than spending money on unnecessary luxuries)
5. Previous character
6. Matters special to the offender, such as illness, disability, family difficulties etc.
7. Any voluntary repayment of the amounts overpaid
Guideline sentence

Overpayment of less than £10,000
9 -12 months’ imprisonment (after a contested trial)

Organised fraud on a large scale that results in loss of considerable sums

30 months’ imprisonment or more (after a contested trial)

* Deterrence should not play a large part in sentence of this sort in the Crown court.
* A partly suspended sentence might be appropriate where a short immediate sentence is insufficient

Current Sentencing Practice Reference: B6-3.3F

ARRA causes changes in tax code

Editor’s note: Although taxpayers are responsible for being aware of any new tax regulations, either on their own or by consulting a tax professional, this article is intended to provide a brief overview of what’s available.

The Earned Income Tax Credit Obamas Stimulus Welfare Scam

Question: $8,000 First Time Home Buyer Tax Credit?

My husband and I bought our first house in February 2009. The rebate was NOT our reason for buying our house. We were just ready to buy one. Anyway… I have some questions about it after a conversation with a fellow first time homebuyer.

One of my friends bought her house a few weeks after us. They did their taxes while their house was under contract and somehow, they got the $8,000 return on THIS year’s taxes. They turned around and used it as a downpayment on their house. She said I was supposed to do that as well and said I probably won’t get the return next year b/c I didn’t claim my house this year. However (and that’s a big however!), we did our taxes a few weeks BEFORE we bought our home. Our mortgage broker and the attorney at closing said that we are supposed to claim that we bought a house in 2009 NEXT year on our taxes.

So did I do it wrong? Did my friend commit fraud? What is going on?….
Friend closed on her house in early March 2009.

Answer: She was wrong as you are not entitled to it until the home is in your name in other words she filed fraudulent taxes to the US government. Yes you will get the money on next years taxes, or you can file a 1040X IRS form as a change or amendment to your taxes, and get it this year

2 charged in Jamaica mortgage fraud: Feds

A Rosedale attorney and another man were indicted last week by the federal government for taking part in an alleged scheme to defraud several mortgages on properties in the city, including one in Jamaica, the U.S. attorney in Manhattan said.

10/22/09 John Stossel on Homebuyer Credit Fraud