Accused of Fraud and Identity Theft After Claiming Somebody Else's Child on My Taxes

My question involves criminal law for the state of: TX

My next door neighbor yesterday evening told me that he's going to report me to the police for "credit card fraud, tax fraud, and identity theft." Below is the background story, and I would appreciate any input.

I am currently raising my little brother, and my next door neighbor had a 15 year old son, Josh, and they both go to the same school, and sometimes he would come over and they would do homework together. Josh's father is really abusive and every once in a while, I could him screaming very loud at night.

One evening on February 2013, when I was watching TV, I heard his father shouting and was verbally abusive and Josh was crying and ran outside the house, and his father chased him outside and screamed, "Get the hell outta my house and never come back" and how he "doesn't want a devil in his presence."

I got outside my house to make sure the dad wouldn't take it too far. So I let Josh stay in my house for the night. It turned out that his dad was going through his phone, and found out he's gay, and couldn't take accept his son for who is. Josh had some cuts and bruises at that time, and I found out from Josh that sometimes when the father watches the TV and there's some gay related stuff that comes on the news, he would say stuff like, "If any f*g steps inside my home, I would shoot them with my gun." It was clear to me that Josh couldn't come back for his own safety, and since I had 2 spare bedrooms, I let him stay at long as he wishes.

So when I was doing my tax return for 2013, and I was answering the TurboTax's questionnaire, I found out I could claim Josh as my dependent for a tax deduction since he was living with me "for more than half the year" and I was providing "more than half" financial support for him. In fact, it was pretty much 100% financial support. I thought that his father didn't want to be associated with him any longer, and that he surely wouldn't claim that he's providing financial and housing support to a "devil." But I was wrong. I filed my tax return before him, so when he filed and his tax got rejected by the IRS because Josh was already claimed on mine, he was very angry and confronted me today. I told the father that he was living with me for 11 months in year 2013, and I also showed him my American Express statements with him as an "Authorized User" on my credit card, as proof that I provided financial support for him in his everyday life for school expenses, driver ed, food, etc. I even bought health insurance for him, and I'm surprised he still makes straight A's in school given the drama. Well, the dad angrily claimed that he is legally his parent, and that by using his son's social security number without parental consent to add to get him a credit card under my AMEX account, I was committing identity theft and credit card fraud.

He told me I was going to hear from the police very soon for "tax fraud, identity theft, and credit card fraud."

Summary: Josh been living with me since February 2013 when he was disowned because his father is extremely religious and conservative. Never once has the father tried to communicate with his son. In fact, some of my neighbors tell me that he said he's happy that Satan is no longer in his house, and how stupid I was for taking him in and that I was going to hell. Today, he's angry at me because he couldn't claim his son on his 1040 for a tax deduction, and is threatening me with criminal prosecution.

The past year, it has been really awkward living next to him. It's like having a Westboro Baptist member as your next door neighbor. Anyways, obviously I don't wanna get in trouble if I am doing anything wrong. Did I do anything wrong? So any advice? Thanks

If the IRS resolves the dispute in your favor, then it's all-but-over. Given the facts you've shared, although I expect the IRS to side with dad it is difficult to see why they would regard it as a fraud case.

Making somebody an authorized user on your credit card account does not constitute "identity theft" or "credit card fraud", even if that person is a minor.

The IRS won't consider it to be fraud, but unfortunately you did claim the child inaccurately. Josh is not a blood relative of yours or a step relative or a foster child therefore he cannot be your qualifying child. (which is where the more than 1/2 of the year rule) comes into play.

He can be your qualifying relative (which I know seems to be a contradiction in terms) only if he lived with you for the ENTIRE year...Jan 1 to Dec 31. Since he only lived there since February, he doesn't qualify to be your dependent for 2013.

However, again, you made an honest mistake and that is not fraud in the eyes of the IRS.

Its also not fraud for you to supply a member with a user card on your American Express account. Dad won't get anywhere with any of that.

This is one of the problems using a program like TurboTax to prepare your tax return. It can lead you far astray. Mistakes are not fraud, as llworking has pointed out. No need to panic. You should amend your tax return to remove the dependent exemption you were not entitled to, and any other tax benefits that might have flowed from that mistake.

However, there's another issue here. How would the father know what you put on your tax return if you didn't disclose it? And, just as your tax return is not anyone else's business, theirs is none of yours. But just to clear up the misunderstanding, the boy's father does not have to prove financial support in order to treat the boy as a qualifying child. If the IRS considered a runaway child's status as a "temporary absence from the home" then the father would legally be entitled to claim the boy on his tax return regardless of all these other circumstances. A child who is "staying at a friend's house" is treated as having slept in the custodial parent's home, so I think he would be in the clear.

Bubba Jimmy, if the father attempted to claim the child in question and tried to e-file, it would have been rejected due to the fact that someone else already claimed him. I think after that, the father can deduce who claimed him (and why)

Quote:

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Quoting llworking

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The IRS won't consider it to be fraud, but unfortunately you did claim the child inaccurately. Josh is not a blood relative of yours or a step relative or a foster child therefore he cannot be your qualifying child. (which is where the more than 1/2 of the year rule) comes into play.

He can be your qualifying relative (which I know seems to be a contradiction in terms) only if he lived with you for the ENTIRE year...Jan 1 to Dec 31. Since he only lived there since February, he doesn't qualify to be your dependent for 2013.

However, again, you made an honest mistake and that is not fraud in the eyes of the IRS.

Its also not fraud for you to supply a member with a user card on your American Express account. Dad won't get anywhere with any of that.

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Thank you for your response. So I could only claim him if he were to live with me the ENTIRE year? 11 months is not good enough? Also, the important question I have is if the "father" could legally claim Josh as his dependent, even though the father assaulted him and disowned him and thinks he's the devil? I am reading stuff on the IRS's website (Publication 501 - http://www.irs.gov/publications/p501/ar02.html) and in order for the father to claim his "qualifying child," he needs to pass the 5 tests. I have doubts about him passing test (3) and test (4). Namely,

(3) The child must have lived with you for more than half of the year. There are exceptions for temporary absences, children who were born or died during the year, children of divorced or separated parents (or parents who live apart), and kidnapped children.

(4) The child must not have provided more than half of his or her own support for the year. There are exceptions for multiple support agreements, children of divorced or separated parents (or parents who live apart), and kidnapped children.


I am not a lawyer, but to me, it doesn't seem like he passed test (3) nor test (4)? Am I correct? The IRS website also stated that one of the exceptions is if the child is "kidnapped." Just to make sure, what I am doing is not considered "kidnapping", correct? I was posting in a different (non-legal) forum initially, and I got all these responses, and one of the posters said I might get charged with kidnapping and harboring a runaway. So I figure it was best to post here on a legal forum.

In addition, I have in my safe a USB of the Josh's bruises, cuts, and blood from his assualt on February 2013. I am just wondering what I should do with it? And is it illegal to not report it?

Forgive me if this has already been answered, but did I break any law at all, and if so, which law? And if I did, what are the chances that I would be prosecuted? And what should I do going forward? Everything I have done up to this point was with good intention, and I don't want to get in trouble with the law. I really had no idea the father would claim, according to him, "the devil" as his dependent on his tax return. I thought he wanted nothing to do with him anymore. If I knew, I wouldn't even claimed him to avoid this confrontation. When I saw a crazy nutcase using his religion as a weapon to hurt his kid and deprive him of a future, I just couldn't stand by and do nothing.

Honestly, what you probably should have done (back when dad first beat him and kicked him out) was to call the police and let the police get child services involved. However, you did not do that so its a moot point now.

It would be very difficult at this point for the father to attempt to claim that you kidnapped Josh or were harboring a runaway. Dad knew exactly where the child was for the last 11 months and did nothing about it then, so it would difficult for him to claim anything now.

LLWorking, etc., can answer this one better then me:

My question would be:
Could Technox file for legal guardianship of Josh? I am wondering that because of the issue of having to sign papers such as Medical Treatment, school paperwork, or even a work permit for Josh?

Would this be something as simple as publishing notice in the papers that "Technox has filed for legal guardianship of Josh".

I know my grandparents became my legal guardians and both my mom and dad signed the papers. Since Josh is disowned....I am wondering if Tech would have a chance at obtaining legal guardianship?

He has no standing to file for guardianship of Josh unless he had the consent of Josh's parents.

That sucks.

Tech....you are totally wonderful for taking care of this young man.