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Craigslist ad seeking false tax dependent filing data leads to federal indictment of Missouri man

When the hubby and I head to a sporting event where only young fans are given freebies, say a team-logo cup or a bobble-head doll, we joke that we should be able to rent a kid or two so we could get the goodies. Yes, we would take sports-related candy etc. from children!

Snagging a foul ball while holding his baby_Cubs-Dodgers_MLBThis baby didn't hamper dad's ability to snag a foul ball. Plus, he provides his parents with several potential tax saving options. Click image to see MLB video of the catch and story about the ensuing controversy. 

Well, one Missouri man allegedly took our jesting approach to an illegal tax extreme and the Internal Revenue Service and federal law enforcement officials are not laughing.

Raheem L. McClain allegedly posted the following ad (yes, in all capital letters and grammar/punctuation mistakes included) back in January on Craigslist:

WANTED: KIDS TO CLAIM ON INCOME TAXES -- $750 (SPRINGFIELD, MO)

IF YOU HAVE SOME KIDS YOU ARENT CLAIMING, I WILL PAY YOU A $750 EACH TO CLAIM THEM ON MY INCOME TAX. IF INTERESTED, REPLY TO THIS AD.

No, this is not an April Fools' Day joke.

And yes, apparently you can get anything on Craigslist.

Note, however, that the tax police are paying attention to what goes on online. And they are following up with official, no-kidding legal actions.

Tax fraud indictment for fake kids: A Springfield, Missouri, federal grand jury has indicted McClain for filing false income tax returns in connection with the Craigslist advertisement seeking to purchase identity information for children that could be claimed as tax dependents.

The three-count indictment against the 37-year-old Ozark, Missouri, resident alleges that McClain filed a false return for 2014 on Feb. 3 in which he claimed two sons and a daughter as tax dependents, including Social Security numbers for the children on the return.

The next day, according to the indictment, McClain allegedly filed an additional two false returns for 2012 and 2013 that also claimed the same three dependents, but the tax identity numbers were listed as belonging to one son and two daughters.

McClain has been arrested on the tax fraud charges and made his first court appearance a month ago. No trial date has been set.

If convicted of willful tax fraud, McClain could face jail time and substantial fines.

Excellent tax exemptions: Why would McClain or anyone take such a risk? Because dependents provide taxpayers with many tax breaks.

First, there's the annual exemption amount, which is an excellent way to immediately cut your adjusted gross income amount to a smaller taxable income level. For 2015 returns, each qualifying exemption is worth $4,000; it goes up $50 to $4,050 for tax year 2016.

In McClain's case, the three young dependents he allegedly claimed for the 2014 tax year were worth $3,950 each, or a total of $11,850. On a 2013 return, a dependent provided a $3,900 exemption; it was $3,800 for the 2012 tax year.

Other child-related tax breaks: Then there are the additional child-related tax breaks you might be able to claim.

Among the most popular are the child and additional child tax credit and the child and dependent care tax credit.

There also are a variety of tax benefits to encourage/help you save for your child's education.

And don't forget about the Earned Income Tax Credit, or EITC. Depending on your income and family size, this credit could wipe out your tax bill and even get you a refund.

So, yes, there are plenty of enticements to tempt unscrupulous or desperate folks to claim nonexistent children on a tax return.

Not worth the illegal tax savings: But there also are plenty of punishments if you get caught.

So don't be as brazen or delusional as folks who try to convince the IRS that their families are larger than they really are. That includes the handful of taxpayer each year that try to write off their pets as furry family members.

Filing a fake return is no joke on April 1 or any day.

When the feds catch up with you, it will cost you much more than any tax savings you might fabricate.

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Comments

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Sham Rock

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