Janitor Bob Posted February 24, 2011 Report Share Posted February 24, 2011 previous client calls me up and tells me that she had no income in 2010 because she was laid off from her job in late 2009. Continues to tell me a sob story about how she is broke because she forgot to file for unemployment (how do you "forget" to file for unemployment?)and now it is too late to file for it. Anyway...She heard from a friend that she could get that earned income credit thingy and get a few thousand dollars. I told her that in order to get the EARNED INCOME credit, you needed to have earned income. "Well just because I did not get paid anything in 2010, does not mean I did not earn it. I'm working now...does that help". "Not until next year", I said. "I'm sorry, but if you had no income in 2010, I cannot do anything for you." "Well, I'm going to someone that can" "Good Luck with that." My patience with clients is wearing thin these days Quote Link to comment Share on other sites More sharing options...
David1980 Posted February 24, 2011 Report Share Posted February 24, 2011 "Well, I'm going to someone that can" Unfortunately she will find someone that can. There's a lot of people who want fake returns created. Put some household employee wages on line 7. Put in that they had education expenses, get the refundable AOC. Get the $400/$800 MWP. EIC if they have kids or can "borrow" someone else's kids for the tax return. The shady preparer probably will do it and just not sign the return. Or maybe they will, maybe they'll wait for the taxpayer to leave and fraudulently file it with a bank product and take $800 of the refund as prep fees. Hopefully the IRS catches on and catches the preparer. Hopefully they also take the refund from the taxpayer to pay back the fraudulent refund for the next several years. My guess is most get away with it though. :( Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted February 24, 2011 Report Share Posted February 24, 2011 Yeah, she will talk to her friends, and someone will tell her how to get it by telling the preparer that she had 'babysitting money earned' or cleaned houses for cash, etc, and then the preparer, who may be as innocent as the driven snow, will file her a Sch C and an EIC, and she's got a nice check coming. Assuming, of course, that she has a child or two. The cheaters tend to hang out together and they share these things, so she will find out just how much to claim as income to max out the EIC. Quote Link to comment Share on other sites More sharing options...
Pacun Posted February 24, 2011 Report Share Posted February 24, 2011 "Well, I'm going to someone that can" Unfortunately she will find someone that can. There's a lot of people who want fake returns created. Put some household employee wages on line 7. Put in that they had education expenses, get the refundable AOC. Get the $400/$800 MWP. EIC if they have kids or can "borrow" someone else's kids for the tax return. The shady preparer probably will do it and just not sign the return. Or maybe they will, maybe they'll wait for the taxpayer to leave and fraudulently file it with a bank product and take $800 of the refund as prep fees. Hopefully the IRS catches on and catches the preparer. Hopefully they also take the refund from the taxpayer to pay back the fraudulent refund for the next several years. My guess is most get away with it though. I was discussing this exact situation with my partner because there about 3 preparers that do that. My partner said "I think the IRS will soon close those places". I said: "they don't register as E-file provider or even as preparers. To the eyes of the IRS, all these people file their returns by themselves". People go there because they know exactly that they will not sign the return and deductions will be inflated. When these taxpapers come to my office, I checked their previous year's return. Most of them don't speak English, and some barely know how to write even in Spanish. I asked them, on these return it reads that you paid $3,050 on child care, what daycare did you take your child? They said, I didn't pay any daycare, I show them, the name of the day care and the amount that they claimed was paid to that company. (Lately, those preparers don't provide copies of 2441 so I no longer can show the name and address of the daycare). At this point, these taxpayers, become the victim and they said "well, we trust the people that prepare our taxes, I didn't know they were doing that... I could demand them." I tell them, "you knew exactly what you were doing from the moment you went to that place... but anyways, let's continue checking your return". I asked, what University did you attend? Of course, they answer... "I didn't go to university". Again, they play the victim's role. I inform them that they should amend and explain the penalties, etc and I move to the current year return. I make a quick assessment of their situation and I tell them, this is what you will get back or this is what you will owe. They cann't believe it. I hand them their W-2 and I said... you don't owe me anything and you can get a second opinion. I show them their way to H and R block and call the next client. I do not want them as my clients and I don't care if I lost my time but I want them out of my door. Quote Link to comment Share on other sites More sharing options...
Achmid Posted February 24, 2011 Report Share Posted February 24, 2011 Yeah, she will talk to her friends, and someone will tell her how to get it by telling the preparer that she had 'babysitting money earned' or cleaned houses for cash, etc, and then the preparer, who may be as innocent as the driven snow, will file her a Sch C and an EIC, and she's got a nice check coming. Assuming, of course, that she has a child or two. The cheaters tend to hang out together and they share these things, so she will find out just how much to claim as income to max out the EIC. Most of my clients that get the EIC are would be artists of sorts, but end up giving all back SS tax if single. Most often single people wish to earn SS credits if they are approaching retirement and are missing credits to get SS. Quote Link to comment Share on other sites More sharing options...
Jim Oh Bkkr Posted February 24, 2011 Report Share Posted February 24, 2011 95% of the calls I got for this called it the "UNearned income thang". "I don't E-File" always got rid of them. Now what am I gonna do? Jim Quote Link to comment Share on other sites More sharing options...
Margaret CPA in OH Posted February 24, 2011 Report Share Posted February 24, 2011 If they are specifically asking that question, you could still reply that you don't efile 'those' returns and be truthful. Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted February 24, 2011 Report Share Posted February 24, 2011 And I want my piece of the pie too!!! This bothers me so much, there are so many people out there, that are willing to take any type of job to earn an honest living, then we have the ones that choose not to work because at the end they get rewarded (EIC, public aid etc...) by the government. Over and out! Quote Link to comment Share on other sites More sharing options...
jainen Posted February 24, 2011 Report Share Posted February 24, 2011 >>how do you "forget" to file for unemployment?<< That's why it's called "dope." Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted February 24, 2011 Report Share Posted February 24, 2011 Excellent answer, Jainen. Quote Link to comment Share on other sites More sharing options...
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