Who Else has been Hit by Big Brother Credit Files
Have you ever wondered why you have a credit record, even though you think you have ‘Nothing to record?’
Unfortunately, it is a sad fact of life that we are all becoming just a series of numbers and statistics in this ever-expanding, and sometimes failing, credit-based society.
Even to people like Bank Managers, who used to be able to exercise ‘personal judgment’ when considering a loan.
I can remember, about 20 years ago, when I was importing visual display terminals from a source in Canada, when I needed $50,000 for three days just to import some stock to ready buyers. I just told my friendly bank manager, who had watched my business grow, and he simply marked my account for the extra amount.
Nowadays, luxuries like personal judgment are unfortunately a thing of the past, as we are now just numbers in an ever-impersonal society.
Fine – but what if somebody pushes the wrong button on a computer input form, or a malfunction occurs, or worse still, somebody tries to steal your identity?
Get a bad or an adverse credit rating and in today’s impersonal society – you are virtually done for! And you know what? The first you actually realize it is when you are embarrassingly turned down for a $549 washing machine that you want to use a credit purchase for in a busy store .
How embarrassing and frustrating!
Worse than that, say you bought your property on a fixed rate mortgage several years ago (unheard of now of course!), and your fixed term is coming to an end. You go to renew it, or to look for a better provider, and Boom! You have a lousy credit score that you knew nithing about – so you either have to accept the hideous extension of credit your existing mortgage provider will offer, or find that all the other mortgage providers will only help you with a whacking great loading on their interest rates!
So, you have two courses of action here. You can attempt to try and sort out the mistakes on your file by some faceless person (or computer) by approaching one or more of the Big Three credit reporting companies, or you can approach one of the small number of credit repair agencies that are springing up in the UK.
You have a vast choice if you live in the States, although there are some rogues amongst that bunch, but in the main, credit repair companies can do a very professional and fast job on your behalf.
If you look for the best deal, you may well find one or more of these credit repair agencies that do far more than just that, and can offer a complete ongoing credit management reporting facility on your behalf.
With the massive rise in computerization and the possibility of human or machine error, and the ever-increasing identity thefts on the internet, such a service should not only save you a good deal of money but also help you to sleep at night.
Geoff Morris
http://www.articlesbase.com/personal-finance-articles/who-else-has-been-hit-by-big-brother-credit-files-493093.html
What’s the penalty for filing someone else’s kids on your taxes?
Ok so my brother was notified today that his taxes were being audited. Problem is that he is filing his friends kids on his taxes because his friend owes back child support and if he filed them he would lose his child tax credit so basically he lets my brother file them and they split the proceeds. Anyway though all he told me was that when he filed this year he had a notice on the online status telling him they were awaiting additional documentation, so he goes to the irs office and they tell him he will be getting a letter from the irs and that he is being audited. My question is what do you think the irs will do when they find out he was filing someone else’s kids? Will they just make him pay back his taxes from the last couple years or so, or will they send him to jail or both?
he did claim eic
He will have to refund the money plus interest and penalties and he can be charged with fraud. The IRS will also audit all his prior tax returns. His new mailing address will be Leavenworth. He should be looking for a lawyer
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He probably will not be jailed if he handles himself well. He may do better with representation from a qualified professional.
Needless to say, he is in serious violation of the law and will be saddled with penalties and interest as well as repayment of the amount in question. He will be unable to claim EIC for the next five years, even if he has a qualifying child, if he claimed that credit for these children. Let’s hope he didn’t err to that extent.
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Oh, wow. He will be looking at jail time and definitely paying back the money. What a stupid, stupid idea….
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This is perfectly legal; you have nothing to worry about. The IRS is actually known to give bonuses for people intelligent enough to figure out a way around the system. It’s a way to reward the more intelligent among us.
JEREMY! YOU HAVE OUTWITTED ME FOR THE LAST TIME! YOU CANNOT KEEP RUNNING FOR THE REST OF YOUR LIFE!
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I have been an IRS auditor for 22 years.
He needs to flee the country. He should get facial reconstructive surgery, change his name to Raul, and move to Peru.
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I have been dodging IRS auditors for 22 years.
If he filed with dependents that he does not qualify to claim and the IRS finds this in audit,
(1) He will have to pay back all the tax savings due to the dependents
(2) Pay interest on the tax savings paid back
(3) Pay penalty on tax savings paid back
(4) Perhaps pay fraud penalty if the return was knowingly prepared incorrectly
(5) Probably be disallowed from claiming the earned income credit for 10 years.
To assess the criminal nature of his activities, you should recommend that he consult with a criminal tax attorney.
Richard K
Master Tax Advisor
This advice is based upon my understanding of the tax law in effect at the time is was written as it applies to the facts described by you. See my profile for more information.
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Penalties and additional tax. Quite possibly a fine. He is guilty of fraud and knew it. He and his friend are pretty stupid to think that would work.
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Tax fraud is what they finally got Al Capone on and where did he go? Both brother and his friend are in big trouble, then lets add the fines and interest in trouble and in debt. Personally being a taxpayer that has been ripped off by his actions, hope they throw the book at him, but then again I am sure they will. My guess is 10 years
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At the very least, he’ll have to pay back what he got illegally, plus interest and penalties, and if he claimed EIC for them he will be banned from the EIC program for up to 10 years even for kids he could legally claim it for.
He could be prosecuted and sent to prison, but probably won’t be.
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I wouldn’t sleep very well tonight….Federal prison time is no fun!
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