lawyer says claim the kids

[BP.]

Client phones and says his girlfriend wants him to ask me a question. She had no income all year, but her lawyer says she can claim her kids. I'm thinking, claim them for what?

The lawyer says he (she?) can make up a paper (W-2/1099? I don't know) saying the girlfriend had income. Girlfriend's question is how much income does she need to claim the kids?

I say, now she had no income right? Yes, right, no income. Well, I say, no income means she won't be filing or claiming anything as her taxable income is already zero. OK thanks, says client.

If this girlfriend shows up with any sort of income reporting document, I'll decline the job, as I've already gotten advance notice the doc'll be phony.

I wondered why a lawyer would risk their practice for this nonsense, but, based on jainen's earlier thread about fake W-2's, lots of us (me possibly included, as who wants to tangle with a lawyer?) would merely turn down the job, but not take steps to turn the crook in (to IRS or state bar.) So in practical terms we've minimized the risk to the lawyer. What would you guys do?

[jainen]

I might do something

>>What would you guys do?<<

What I WOULDN'T do is pay any attention to some guy I never met who says his girlfriend says her lawyer says something that doesn't make any sense. If they show up with a W-2 (and a checkbook), then I might do something.

[taxmandan]

To answer your question I would forget about it and not waste any time on reporting anyone for anything, you only have a verbal comment to rely on and that is not probable cause of wrongdoing. Do you have the lawyers name or a written opinion signed by the lawyer? Most likely there is no lawyer involved, I've had clients say that to add weight to their question, when it was really their neighbors' gardener's brother's sister-in-law who told them that.

[Zee]

Hang him high!

Client phones and says his girlfriend wants him to ask me a question. She had no income all year, but her lawyer says she can claim her kids. I'm thinking, claim them for what?

The lawyer says he (she?) can make up a paper (W-2/1099? I don't know) saying the girlfriend had income. Girlfriend's question is how much income does she need to claim the kids?

I say, now she had no income right? Yes, right, no income. Well, I say, no income means she won't be filing or claiming anything as her taxable income is already zero. OK thanks, says client.

If this girlfriend shows up with any sort of income reporting document, I'll decline the job, as I've already gotten advance notice the doc'll be phony.

I wondered why a lawyer would risk their practice for this nonsense, but, based on jainen's earlier thread about fake W-2's, lots of us (me possibly included, as who wants to tangle with a lawyer?) would merely turn down the job, but not take steps to turn the crook in (to IRS or state bar.) So in practical terms we've minimized the risk to the lawyer. What would you guys do?

The bum should be turned in to the IRS and Bar. He/She has no ethics. Your most likely won't see the clients again. Of course, the others are really correct even if you can confirm the lawyer did fraudulently prepare documents, it's probably not worth getting involved. This is just another variation of what the guy "down the street will do".

[BP.]

>>What I WOULDN'T do is pay any attention <<

>> I would forget about it <<

So right! Anyhow, not asking what you'd do at this point. What is it anyway but third hand info?

>>Most likely there is no lawyer involved, I've had clients say that to add weight to their question, when it was really their neighbors' gardener's brother's sister-in-law who told them that.<<

Yep!

>>and a checkbook<<

Always something to chuckle over, except when the dreaded vaccuum is left!

Cheers!

[Brad Imsdahl]

What a non-tax lawyer might do is claim the boyfriend received household services from having a live in girlfriend. The lawyer might draw up a paper (contract?) between girlfriend and boyfriend where boyfriend agrees to let her live with him rent free in exchange for laundry, cooking, and cleaning services. The value of which is X dollars per month, which just happens to be enough for EIC to kick in and exceed any SE tax or income tax on the value of the services rendered. Girlfriend thus gets a refund for EIC.

[Matt Sova]

Contract

Do you think the contract will include other "services" not listed in your reply?

[Brad Imsdahl]

Do you think the contract will include other "services" not listed in your reply?

I think that could be a reason to tell your client not to go down that road. Do you really want to claim you are bartering for services?