What happens to the money?
Another quick question as to my DH's ex claiming four years worth of EICs this tax season that were legally awarded to my DH in the CO.
If she does it anyways even though she knows that she will be in contempt of the CO and my DH files for contempt, what happens to the 25k that she'll get from claiming the EICs? Does she just get a little slap on the hand for four counts of contempt on the existing CO and gets to keep the money? Does she have to give it back to the IRS (if that's even an option)? Or does she have to sign the money over to DH?
DH can't claim them becuase he makes to much money, but she already has both of the child dependent credits and refuses to even let DH claim one of the kids in exchange for the EIC, which means he gets screwed every tax season by the IRS even though he supports both of the kids 50% of the time throughout the year.
Just wondering how these types of things work in our lovely judicial system.
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From my understanding the IRS
From my understanding the IRS doesn't involve themselves in this type of a situation. They would hand the money over to her and then DH would have to deal with it on his end. Now, if the IRS, through an audit, were to see that she willingly lied on her tax forms by claiming that she had the kids for more than 50% of the time over the past four years (which isn't true)in order to be eligable for the EIC and the fact that the CO states that DH gets it, then they would do something about it because it would be considered fraud at that point and they would handle it accordingly.
How is slapping someone on the wrist for contempt of court and allowing them to keep whatever it was that they were in contempt for teaching them not be a shady manipulative person? What's to prevent her from doing it again next year and the year after that and the year after that? I guess I just don't understand. Wouldn't that technically be stealing?
use this form, and i would
use this form, and i would include a copy of the CO. (u'd mentioned yesterday that she didnt want the irs to see the c.o, but this would be a surefire way for that to happen.) that should guarantee a review of her filing.
http://www.irs.gov/Individuals/How-Do-You-Report-Suspected-Tax-Fraud-Act...
So, she would have qualified
So, she would have qualified for the EICs for the years in question, had they not been awarded to your DH?
I am wondering, since he could not take the credits (even though he was technically awarded them), if a judge would even see it as contempt.
And as long as they both are not trying to claim it and she qualifies for it, I don't think the IRS would consider it illegal or fraud or whatever, as the IRS doesn't care about COs, they only care about qualification and paying more than 1 person for the same credit, for the same kid.
Right, but your FDH's return
Right, but your FDH's return was rejected because BM had also claimed the kids.
In the OP's case, 2 people are not trying to take the same credit, so if she qualifies and he doesn't....
In order to be eligable for
In order to be eligable for the EICs you need to have the kids for over 50% of the year. She only has them for 50% of the year. So she doesn't qualify. Custody is split 50/50 and my DH was awarded majority custody for the purposes of the EIC.
So the CO isn't even the big
So the CO isn't even the big issue, she doesn't qualify, regardless.
If BM was smart, she would work it out with your DH so they could get the maximum credits between the two of them and split the money.
Oh, geez, did I just write that? BM and smart in the same sentence?
In a perfect world that
In a perfect world that solution would be great but BM wants all of the money. She wants to dependent credits, the EICs, and anything else she can steal or fraudulently claim.
Even if the CO didn't state that DH has majority custody for the EIC, she still wouldn't be eligable. Plus, for the past 4 years she has technically been fraudulently claiming the kids. According to the IRS the parent that has the higher gross income gets to claim the kids. The CO states that she gets to claim the kids but DH has to fill out a tax form stating that she gets to claim them. She has never requested this form and neither has the gentleman who does her taxes. I am assuming that this will be something that IRS might not like.
Yeah, Form 8332. That is what
Yeah, Form 8332. That is what BM over here was supposed to fill out every year, since she had custody and normally would be the one who could claim SD.
And, now this was years ago, but the IRS has very specific rules as to the year of the divorce and what can be used to show proof of who can claim the kids. Even though the divorce decree stated that DH claim SD, Form 8332 had to be submitted, not a copy of the divorce decree or CO (because their divorce was later than year such-and-such). That's why DH had to take her to court to get that form signed. Without it, the IRS did not care what the divorce papers said.
It is such a mess, the IRS.
If the IRS finds out (you can
If the IRS finds out (you can let them know 'annonymously" that BM doesn't have the kids more than 50% of the time, they will audit her & she will have to pay it back.
Definitely. If that's a
Definitely. If that's a qualifying factor for the EIC credit, then she doesn't qualify and that IS fraud.
From the research that I have
From the research that I have done, not only will she pay it all back but they will add on a 75% penalty on the fraudulent amount awarded to her plus the additional fines. She would end up owing close to 40k back to the IRS plus she would not be eligable for the EIC for 7 years.
Holy crap! She's really
Holy crap! She's really stupid if she would risk that.
I don't think that she's
I don't think that she's actually done any research as to what happens to people who get caught defrauding the government. Apparently, they don't like it.
Edit to add - she's a complete idiot who thinks that she can just do whatever she wants without any consequences. Unfortunately, DH has set this expectation with her. We have proof of her commiting welfare fraud, she has been in contempt of the CO more than once, stalked my DH, messed with my BD when she was 5 while she was on school property and she just gets away with it. There are never any consequences which is why she continues to do these things.
I just really think that it
I just really think that it would be great for her to do all of this hardwork of defrauding the government, threatening my DH, tying to bully and manipulate him into doing this, and lying to him about it if the judge ordered her to give the money to DH. Now that's cheaters justice.
irs(dot)gov - *giggles* found
irs(dot)gov - *giggles* found this too
(they are referring to eic, but they call it eitc)
"If IRS denied your EITC for any year after 1996 and found your error was due to reckless or intentional disregard of the EITC rules, you cannot claim EITC for the next 2 years. If your error was due to fraud, you cannot claim EITC for the next 10 years. The date IRS denies your EITC and the date on which you file your tax return affects the 2 or 10 year time frame for when you are barred from claiming EITC."
posting new blog- i wont
posting new blog- i wont hijack your thread, gameon!
hope we've helped you so far!!!!
he doesnt qualify for it
he doesnt qualify for it anyways right? so technically your DH got screwed on the whole tax deal...so i don't see how she can be held for contempt if DH can't claim it anyway....
So if that line of thinking
So if that line of thinking is okay, then DH can just claim both of the kids even though the CO states that she gets them right? I mean if she can just do whatever the heck she wants to do regardless of the CO then DH should be able to do the same too correct?
And it's considered contempt
And it's considered contempt because legally she is not entitled to the EICs. They are DH's. Which means that regardless of whether or not he can claim them, they are his and not hers. If she claims them then she has taken something without permission from DH, which would put her viloation of a court ordered document, which would equal contempt.
Now you throw on using threats and bribary as a way to get DH to help her defraud the federal government (because technically neither of them qualify for the EIC and the ony reason why DH even gets it was because it was awarded to him in the CO)so DH will sign them over to her.....and we're in a whole new ball game.
I am assuming that the IRS doesn't take well to fraud, just saying, and using threats as a means to extort someone into commiting fraud for you...well, I just don't see things going very well for BM if the IRS gets their hands on that information.
I'm not sure it'd be
I'm not sure it'd be considered fraud. Except for your CO stating DH could file for EIC instead BM, he did not and could not file for the extra credit. She would need him to sign the form giving her the permission to claim the credit (since it is his to claim) but if the IRS deems the BM does qualify based on her income, number of kids, blah blah, it wouldn't be fraud. Just because Dh has a Co saying in his CO he is the one who could claim them but could not due to income doesn't necessarily make doing a 3yr back adjustment fraud. Parents who qualify do get to claim the credit. IRS would not let both parents file for it, but in what she's wanting to do, only one parent is filing for the credit.
As far as contempt. I'm not sure Dh has a case there either. He has traded before on who files/claims what. He is the one who is given the opportunity to claim the credit (via the CO), but it's not like this is some personal asset that personally belongs to DH. He can't claim it. If his income was lower, yes it's his award in the CO. But I get the feeling you're looking at this as if it's DH's prize in the divorce to do as he pleases with...this isn't a personal asset of Dh's cash here, we're talking about a tax credit paid out of tax payers money to a low income parent.
I don't see your Dh being taken by the IRS based on BM getting to claim the dependents and the child tax credit. She was awarded the right in CO and she qualifies. Your Dh took the EIC in CO but he no longer qualifies and can't use it. Instead of this yearly fight , why not go back and modify the outdated CO and try to get the tax thing done in a more fairly current situation order? I realize you believe this is his due right (the CO's EIC) but it is a worthless award to him. It's meaningless.
thank you
thank you Twoviewpoints...thats exactly what i was trying to get at here...he doesnt qualify to get the EIC...BM may not either...but if she does, and is claiming them on taxes, she will AUTOMATICALLY it get cause DH doesnt qualify anyway....