Another FSA scam exposed, Earned Income Credit Fraud

[ARCHIVED THREAD] - Another FSA scam exposed, Earned Income Credit Fraud (Page 1 of 2)

Posted: 1/20/2013 10:31:29 PM EDT

If you were already pissed at the FSA for milking the system this will really make your blood boil. I have a friend that signed on with Jackson Hewitt to do taxes as a part time second job. She just told me that she is going to quit because the whole operation is shady.

Here is what she sees on a daily basis:

People that don't work, don't have a job, have no receipts on anything, no paperwork on anything will come and claim $15,000 in "self employment income". She was instructed to file the taxes for these people even if they have no paperwork backing up any of what they are saying. Most of them walk away with around a $5,000 "refund". She says Jackson Hewitt takes a percentage of the refund as payment sometimes charging over $500 for filing a simple tax form. Jackson Hewitt is obviously aware of what these people are doing but doesn't care since it generates revenue for them. The scammers know what is going on and don't care, which is why they have no problem paying $500 to have a simple tax form filed.

So not only are the FSA getting food stamps, housing, cellphones, they are not working, not paying any taxes, and sticking their hand into Uncle Sam's pocket and pulling out another $5,000 as a credit for money that never even existed!

Posted: 1/20/2013 10:38:03 PM EDT

[#1]

You never wondered why all these tax places spring up in the low rent areas this time of year?

Posted: 1/20/2013 10:40:44 PM EDT

[#2]

Report to IRS?

Posted: 1/20/2013 10:40:49 PM EDT

[#3]

I don't see how anyone who claims $15k in "self employed income" will receive anywhere near $5k in a tax refund without statements showing a massive loss for the business.

Or is that the point?

Posted Via AR15.Com Mobile

Posted: 1/20/2013 10:41:35 PM EDT

[#4]

Color me Shocked.
Shocked, I tell you. Shocked I am.

Posted: 1/20/2013 10:41:39 PM EDT

[#5]

Quoted:
I don't see how anyone who claims $15k in "self employed income" will receive anywhere near $5k in a tax refund without statements showing a massive loss for the business.

Or is that the point?

Posted Via AR15.Com Mobile

The earned income credit, AKA the fuck trophy rebate.

Posted: 1/20/2013 10:42:21 PM EDT

[#6]

Quoted:
I don't see how anyone who claims $15k in "self employed income" will receive anywhere near $5k in a tax refund without statements showing a massive loss for the business.

Or is that the point?

Posted Via AR15.Com Mobile

Can't question a protected class.......

Guess whonisngetting audited though? You!

Posted: 1/20/2013 10:43:31 PM EDT

[#7]

Quoted:
I don't see how anyone who claims $15k in "self employed income" will receive anywhere near $5k in a tax refund without statements showing a massive loss for the business.

Or is that the point?

Posted Via AR15.Com Mobile

EIC is a motherfucker. It can actually refund you more than you paid.

Posted: 1/20/2013 10:44:00 PM EDT

[#8]

Yep, the sweet spot for the EIC this year is between 25K and 30K. Taxpayers may find this adding of fictitious income counter-intuitive, but with low income filers it makes sense.

With little or no actual income and withholding the average hoodrat would be stuck with nothing but child tax credits for a refund (yes, I know that you think that is only a deduction to reduce amount owned, but you are wrong, for the low income crowd it is refundable). If they have income right in the sweet spot a welfare queen who hasn't actually earned anything can claim she was self employed and earned $26500 for the year, throw in her child tax credits, and she can bring in over 10K on her refund without ever withholding a penny, without that fake income she would probably only be getting 5K.
You have to love the FSA.

ETA: Care to guess what the chances of a person under 40 with less than 30K income claimed, and good SSNs on all of her fuck trophies is? Yeah, right around never ever gonna happen.

Posted: 1/20/2013 10:46:14 PM EDT

[#9]

The working man really is a sucka

Posted: 1/20/2013 10:49:16 PM EDT

[#10]

Shh... Don't tell anyone that the illegal immigrants do this and get $15k refunds! It's from all the fake kids they claim. IRS knows and won't fix the issue, even though it costs us billions annually.

Posted: 1/20/2013 10:58:24 PM EDT

[#11]

I don't care.

I'm just a white, male knuckledragging prison guard.

I wonder where absolute rage comes from.
Can't be from me.

Maybe some other guy.

Posted: 1/20/2013 11:01:17 PM EDT

[#12]

Quoted:

I don't see how anyone who claims $15k in "self employed income" will receive anywhere near $5k in a tax refund without statements showing a massive loss for the business.

Or is that the point?

Posted Via AR15.Com Mobile

Well it's not a refund, it is the earn income credit. You know poor people that work but don't make enough are given a check by the government to give them more money. If you look at the Earned Income Credit table you will see $15,000 to $17,000 is the sweet spot where you maximize how much free money the government will give you. "Earn" less than that or more than that and the amount goes down. http://apps.irs.gov/app/vita/content/globalmedia/earned_income_credit_table_1040i.pdf

For 2012 these are the maximum amounts of free money people can get by claiming around $15,000 in "self employed income".

$5,891 with three or more qualifying children

$5,236 with two qualifying children

$3,169 with one qualifying child

$475 with no qualifying children

The lack of any type of statement is the point. No documentation at all and they get the huge tax credit back. From the sound of it those people rarely get audited. There is no money to squeezed from them so I bet the IRS doesn't even take a close look.

My friend quit because she realized her name is on the document and if there ever is an audit she can personally be held liable and fined. Supposedly one of the tax prepares was recently fined $10,000. The office is run by the wife of the guy who set it up. He had some type of drug over dose and died. Like she said, the whole operation is shady.

Posted: 1/20/2013 11:01:47 PM EDT

[#13]

The EIC is one of the things that angries up my blood fierce. Biggest scam going. Fuck 'em ALL.

Posted: 1/20/2013 11:05:00 PM EDT

[#14]

Well thank you all for settng me straight on this...

And getting my blood boiling.

Posted Via AR15.Com Mobile

Posted: 1/20/2013 11:06:56 PM EDT

[#15]

Quoted:

The EIC is one of the things that angries up my blood fierce. Biggest scam going. Fuck 'em ALL.

I used to think it was just a bonus the poor people got for working and not getting paid much. But now to find out that these people aren't working at all and just making it all up to steal my money really pisses me off.

Posted: 1/21/2013 2:34:46 AM EDT

[#16]

Here's a story from last year that made me crazy. Guys from Mexico and South America (Here Legally or not) claiming

that they have 10-12-14 dependents and getting $11,000+ tax "returns". Most of the children don't exist or, if they do,

they live in Mexico.

http://www.wthr.com/story/17798210/tax-loophole-costs-billions

Posted: 1/21/2013 3:01:04 AM EDT

[#17]

Shit happens all the time and has been going on for a long time. Wife is a CPA and these assholes come in, expecting her to file a shitass return, " H & R Block got me this much last year." She sends them out the door and then calls IRS with the preparer's name and tax filer's name. She usually doesn't hear back, and the IRS doesn't do shit.

Posted: 1/21/2013 3:06:45 AM EDT

[#18]

This needs to stop. total BS.

Posted: 1/21/2013 3:14:10 AM EDT

[#19]

I am soooo glad I got up for work today.

Posted: 1/21/2013 3:17:12 AM EDT

[#20]

I find that hard to believe. I got a back tax notice in 2011 for my 2009 return, where I failed to claim $13 in interest in my savings account. Unreal.

Posted: 1/21/2013 3:17:42 AM EDT

[#21]

What a fun post to read as I start my workday........

Posted: 1/21/2013 3:18:21 AM EDT

[#22]

Quoted:
I don't care.

I'm just a white, male knuckledragging prison guard.

I wonder where absolute rage comes from.
Can't be from me.

Maybe some other guy.

Well guarding convicts does sorta put things in perspective in the "things are bad but they could be worse" dept.

Posted: 1/21/2013 3:19:44 AM EDT

[#23]

I thought these parasites 'couldn't' work and that is why they are getting all the entitlements to start with.

I guess if there is an upside, it is that at least the $ is staying in this country to be spent and not going to prop up some 3rd world despot somewhere.

Posted: 1/21/2013 3:22:20 AM EDT

[#24]

Quoted:
Report to IRS?

What good would that do? The IRS is the financial arm of Obama's FSA...

Posted: 1/21/2013 3:23:17 AM EDT

[#25]

I have been bitching about EIC for years, but usually the response is "but I need that money, I have kids!". Idiots dont get that you shouldnt have kids if you can't afford them. They'd rather the government subsidize their reproductive stupidity. And it extends well into the middle class. The government should be out of the business of subsidizing reproduction and any other social engineering for that matter. But folks will never vote to take money from themselves and the people with children are in the majority at any given point regardless

Posted: 1/21/2013 3:28:15 AM EDT

[#26]

Quoted:
Report to IRS?

This, and letters to members of the House and Senate that give a shit. That's total BULLSHIT!!

FBO II

Posted: 1/21/2013 3:39:11 AM EDT

[#27]

Quoted:
What a fun post to read as I start my workday........

Yea no shit!

Posted: 1/21/2013 3:49:23 AM EDT

[#28]

How the fuck are they getting away with filing taxes with no SSN's and no quarterly tax payments on this so-called self employment income?

Posted: 1/21/2013 3:51:36 AM EDT

[#29]

I ran my own tax business for 15 years and worked PT for another firm. All of my customers were real working people, no EIC customers. The other firm was in a low income area, EIC filled. I was there for three years, and I just couldn't take anymore of low-life bums getting $4G to $6G tax refunds for leaching while hard working people got squat (FWIW, I made sure to see ALL of their documentation, despite the, "I've been coming here for XXX years, and ain't nobody ever asked me for all that stuff" whining). I quit that firm then closed my own business due to new IRS requirements on my business (read that $$$), rising software costs, and Philadelphia business taxes.

It was said above that the IRS doesn't go after these people- no money in it. Quite true.

Posted: 1/21/2013 3:53:38 AM EDT

[#30]

Wouldn't surprise me if the govt uses these fake hours worked figures to give themselves a pat on the back for a job well done and use in the official unemployment rate reports.

Posted: 1/21/2013 3:56:54 AM EDT

[#31]

You have to make 60K or better to make the same as the FSA does , which outside of the urban areas is damn good money .

Posted: 1/21/2013 3:57:36 AM EDT

[#32]

Quoted:

Quoted:
I don't see how anyone who claims $15k in "self employed income" will receive anywhere near $5k in a tax refund without statements showing a massive loss for the business.

Or is that the point?

Posted Via AR15.Com Mobile

The earned income credit, AKA the fuck trophy rebate.

No that's the $1000 child credit and the child care deduction. EIC is the low income wage earner rebate, rewarding people for being unable to support themselves.

Posted: 1/21/2013 3:58:32 AM EDT

[#33]

This has been going on for years around here.

Many of the black churches around here have seminars on what to do. Not implying racism-- just observing.

There is a running "joke" around here about all the brand new cars that get purchased that end up repo'd in the next year.

Posted: 1/21/2013 3:59:48 AM EDT

[#34]

I owned a mfg. co. for thirty years. You don`t want to know what I saw.

Posted: 1/21/2013 4:01:04 AM EDT

[#35]

Here in Tampa, they go a step further. "They" file fake tax returns in your name and have "the refund" sent back to them on a debit card. All they need is your name and SSN to file the fraudulent return. It's not uncommon to see several thousand in "refunds" for each return.

This scam is so popular, even drug dealers have stopped selling drugs to get in on this easy money scam.

Of course, it sucks when you attempt to file your actual return and are informed your debit card "refund" was sent to a POB a few months prior.

The local IRSs response to this was that "we have to send out the debit cards because some people don't have checking accounts to make the refund deposit...

The IRS is more complicit in the fraud than the thieves.

Posted: 1/21/2013 4:02:30 AM EDT

[#36]

Simple fact:

They can claim ZERO income and still get the EIC for $5000.

Worrying over $15K claimed is a waste.

Posted: 1/21/2013 4:03:01 AM EDT

[#37]

Quoted:
Report to IRS?

Posted: 1/21/2013 4:11:50 AM EDT

[#38]

I'll never understand why anyone can get a refund of more than they paid in.... complete BS.

Posted: 1/21/2013 4:14:26 AM EDT

[#39]

Have to keep their voters on the plantation.

Posted: 1/21/2013 4:17:31 AM EDT

[#40]

Quoted:
I find that hard to believe. I got a back tax notice in 2011 for my 2009 return, where I failed to claim $13 in interest in my savings account. Unreal.

That's because your not FSA

Posted: 1/21/2013 4:17:46 AM EDT

[#41]

They know how to work the system and take our money. Don't forger they also do many more scams to get our money. Just wait until 2014 when OBcare take efffect. More of our money will go to them. i know a lot of people who work just to get by. These FSA are doing better than they are. This whole thing just burns my ass.

Posted: 1/21/2013 4:20:02 AM EDT

[#42]

You should see the signs around my shitty area advertising the money back per-child.

Posted: 1/21/2013 4:20:25 AM EDT

[#43]

Posted: 1/21/2013 4:22:26 AM EDT

[#44]

when I was in the Army, I consistently heard rumors that certain single moms would calculate the max they could get with their 2-3 kids, and if they maxed out their EITC at 2 kids, they would allow a fellow single mom to claim the third kid in order to increase HER refund in exchange for a percent of the increase....

Posted: 1/21/2013 4:25:41 AM EDT

[#45]

As said above that explains why all the Tax places pop up every year in the FSA Neighborhoods. It also makes sense because the IRS doesn't focus on auditing the low income people.

Posted: 1/21/2013 4:44:08 AM EDT

[#46]

I thought u have to provide a ssn to get the eic. I literally just did my taxes a couple hours ago and you have to provide a Ssn. How can u claim 10 dependents without that info unless u have fake ssn?

Posted: 1/21/2013 4:49:05 AM EDT

[#47]

Quoted:

I thought u have to provide a ssn to get the eic. I literally just did my taxes a couple hours ago and you have to provide a Ssn. How can u claim 10 dependents without that info unless u have fake ssn?

http://www.huffingtonpost.com/2012/08/07/tax-refund-fraud-florida_n_1752244.html

714 from one address....seems pretty easy to fool the IRS. Also with that video on the illegals filing and getting $10-15k back, I cannot believe this shit.

I just don't care anymore.

Posted: 1/21/2013 5:00:08 AM EDT

[#48]

And you forget to include a 1099 or something and for sure will be audited. The IRS picks on us because we will pay. In addition, how iften does the politician, famous person, etc. go to prison for tax evasion, yet they will come at you with all they have for that extra $1,000 you owe due to an error you made. It would be interesting to see what would happen if the suckers (working people) did not file one year out of protest. But it would take everyone. Will never happen.

Posted: 1/21/2013 5:01:23 AM EDT

[#49]

You don't have to claim any 'self-employment' income. You can work for someone else, make $5,000, pay $100 in Fed income tax and still get $1,500 back for each little rugrat. Filer must have SS #. Biggest scam is filing under someone else's SS # before they file. Client due $3,000 back but then the IRS computer notices a file already submitted under the same # and client is in limbo for 2 - 3 years, before he ever gets the return, sometimes they never get it. The scammer may have gotten double or triple what was due the true recipient.

Reason IRS can come back the following year for $13 of interest not reported is because the bank reported it and the computer caught it.

Posted: 1/21/2013 5:06:52 AM EDT

[#50]

This is the kind of shit that makes me absolutely irate. As a small business owner my taxes suck and these people are making bank off my tax dollars.

[ARCHIVED THREAD] - Another FSA scam exposed, Earned Income Credit Fraud (Page 1 of 2)

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