First, it would be very difficult to prove that one is related to one of the original black Americans that fought in that war. Many black Americans are here from European countries, Jamaica, Haiti, etc. Second, even more difficult to prove is the origin of person filing for this credit. If you are being told that you are entitled to this credit, IT IS A FRAUD.

My next favorite tax fraud involves the EIC cases where one relative ‘gives’ their child to someone else so they can get EIC. Legally, you aren’t allowed to do this and if you get caught, you and the ‘giver’ can be barred from receiving EIC for ten years.

One tax fraud I despise is the efforts of some preparers to charge the client based on a percentage of the refund. That is illegal! First, it gives extra incentive to the preparer to file extra deductions the client isn’t entitled to in order to ‘pump up’ their take. Second, think about those who are filing who OWE money, does the preparer pay a portion of what is owed? Absolutely not! Does that mean if you owe money that your return is prepared free or at a lesser charge? NO!

One of the reasons I got into the Fraud Prevention business is because of cases like these taking advantage of those who just didn’t know the facts. I have an overdeveloped sense of justice for things like that so if you know of this or any other kind of fraud happening in your area, contact the IRS tip line!

David Roberts, CFE, CQBPA, MBA, lives in Kissimmee, Florida with four girls, three dogs, two snakes and one wife. He has been a member of the ACFE for four years and has been studying fraud for longer than that. He is the owner of Homesoon Accounting Services which specializes in Quickbooks Consultations and Fraud Prevention and Detection.