What happens if you knowingly put down the wrong income information?

Here’s some research below, about what might happen if you use the wrong income to obtain subsidies or special enrollment.

One may correct their MAGI Income Line 37 +  by reading the instructions and then logging into their Covered CA Account or appoint us to do it.

We are NOT tax accountants.  Please check with your own CPA, Attorney, IRS or tax adviser.  Here’s a memo we just got Sept. 2018, prohibiting us from giving ANY tax advice or guidance and suggestions of where you can get guidance.  I do NOT want to hear that you are self-employed and can put in ANY number you want.  Please ask a professional  to help you with the number you want to put in the application, under penalty of perjury….

Resources & Links 

• Fraud in Federal & Covered CA Market Places ^{CNBC 9.12.2016}  *
• Covered CA Application (see what you are declaring under Oath)
• tax-whistle blower.com *
• Our webpage on Fraud, Waste & Abuse
• agents and brokers who suspect or know a fraudulent application for insurance has been submitted to report the potential fraud to the California Department of Insurance Fraud Division.   Read more >>> Wshblaw.com
• Tools to estimate income 

Don’t Fake Income

• Some people falsely increase the income they report to the IRS. This scam involves inflating or including income on a tax return that was never earned, either as wages or as self-employment income, usually in order to maximize refundable credits.
  • Just like falsely claiming an expense or deduction you did not pay, claiming income you did not earn in order to secure larger refundable credits such as the Earned Income Tax Credit [or Covered CA Subsidies] could have serious repercussions.
  • See tax form 8962 subsidy reconciliation – Premium tax credit 
• This could result in taxpayers facing a large bill to repay the erroneous refunds, including interest and penalties. In some cases, they may even face criminal prosecution. Taxpayers may encounter unscrupulous return preparers,  Covered CA agents, navigators or Covered CA telephone reps who make them aware of this scam.
• Remember: Taxpayers are legally responsible for what’s on their tax return even if it is prepared by someone else. Make sure the preparer you hire is ethical and up to the task. ^IRS.Gov

Falsely Padding Deductions on Returns

Avoid the temptation of falsely inflating deductions or expenses on their returns to under pay what they owe and possibly receive larger refunds.  Falsely claiming deductions, expenses or credits on tax returns is on the “Dirty Dozen” tax scams list. Taxpayers should think twice before overstating deductions such as charitable contributions, padding their claimed business expenses or including credits that they are not entitled to receive – like the Earned Income Tax Credit, Covered CA Subsidies or Child Tax Credit.

The IRS can normally audit returns filed within the last three years. Additional years can be added if substantial errors are identified or fraud is suspected. Significant civil penalties may apply for taxpayers who file incorrect tax returns including:

• 20 percent of the disallowed amount for filing an erroneous claim for a refund or credit.
• $5,000 if the IRS determines a taxpayer has filed a “frivolous tax return.” A frivolous tax return is one that does not include enough information to figure the correct tax or that contains information clearly showing that the tax reported is substantially incorrect.
• In addition to the full amount of tax owed, a taxpayer could be assessed a penalty of 75 percent of the amount owed if the underpayment on the return resulted from tax fraud.

Taxpayers even may be subject to criminal prosecution (brought to trial) for actions such as:

• Tax evasion
• Willful failure to file a return, supply information, or pay any tax due
• Fraud and false statements
• Preparing and filing a fraudulent return, or
• Identity theft.

Criminal prosecution could lead to additional penalties and even prison time. Using tax software is one of the best ways for taxpayers to ensure they file an accurate return and claim only the tax benefits they’re eligible to receive.

IRS Free File is an option for taxpayers to use online software programs to prepare and e-file their tax returns for free.

Community-based volunteers at locations around the country also provide free face-to-face tax assistance to qualifying taxpayers helping make sure they file their taxes correctly, claiming only the credits and deductions for which they’re entitled by law.

www.irs.gov/chooseataxpro.

Taxpayers should remember that they are legally responsible for what is on their tax return even if it is prepared by someone else, so they should be wise when selecting a tax professional. The IRS offers important tips for choosing a tax preparer at IRS.gov.

More information about IRS audits, the balance due collection process and possible civil and criminal penalties for noncompliance is available at the IRS.gov website.

Sheriff’s deputies charged with perjury after stopping cops for speeding, then citing for only not having proof of Insurance  ^{LA Times 12.14.2019}  * 

What is #Perjury?

Perjury is Breaking an oath to tell the truth, the whole truth, and nothing but the truth is perjury. ^Wikipedia

Telling the truth is good for your health 

• Penal Code §118. (a)& 125 provides that:
  • a) Every person who, having taken an oath that he or she will testify…before any competent tribunal…willfully and contrary to the oath, states as true any material matter which he or she knows to be false…is guilty of perjury.
    • Under California law, falsity element of the crime of perjury requires that a statement be literally false; misleading and nonresponsive testimony that is literally true cannot support a perjury conviction. ^{Chein v. Shumsky,* West’s Ann.Cal.Penal Code § 118 California Criminal Jury Instruction Perjury 2640  *  shouselaw.com}
    • An unqualified statement of that which one does not know to be true is equivalent to a statement of that which one knows to be false.
    • In order to lawfully hold a person to answer on the charge of perjury under [California Penal Code] section 118, evidence must exist of a “willful statement, under oath, of any material matter which the witness knows to be false.” ^{Cabe v. Superior Court, (1998) 63 Cal.App.4th 732}
    • in order for there to be a lawsuit in the first place, somebody involved somewhere along the line is not telling the whole truth. ^{power of attorney.com}
    • the crime of perjury depends not only upon the clarity of the questioning itself, but also upon the knowledge and reasonable understanding of the testifier as to what is meant by the questioning, we hold that a defendant may be found guilty of perjury if a jury could find beyond a reasonable doubt from the evidence presented that the defendant knew what the question meant and gave knowingly untruthful and materially misleading answers in response. USA v. Dezarn
    • Chief Justice Burger emphasized that the perjury statute refers to what the witness “states,” not to what he “implies.”  ^{source Bronson v US?}
    • As the California Supreme Court has stated:
      • W]hen ··· a witness’ answers are literally true he may not be faulted for failing to volunteer more explicit information. Although such testimony may cause a misleading impression due to the failure of counsel to ask more specific questions, the witness’ failure to volunteer testimony to avoid the misleading impression does not constitute perjury because the crucial element of falsity is not present in his testimony. ^{Chein v. Shumsky}

Links & Resources 

• Crime Victim Restitution Form Interrogatories – CR 200
• The Free Library.com/
• No one should benefit from their own wrong.” Civil Code 3517
• Bronston_v._United_States
• Perjury under Federal Law – Overview
  
• See above on Fraud & False Statements