QUESTION
Am I going to be subjected to tax fraud investigations?
Asked on Feb 10th, 2017 on Taxation - Ohio
More details to this question:
My sister in law and her kids have lived with my wife and I for the last few years. My sister in law does not work and receives some assistance from the state (food stamps and health insurance). My wife and I have claimed, with my sister in law's knowledge, her and her kids on our tax returns for the last few years because we provide most of their support. Unknown to me and my wife, my sister in law has been reporting to the state that no one claims her and her kids. Now the state is performing an investigation into her tax history to see if anyone has been claiming them. I am nervous that we are going to get audited and face legal issues. What should I do?
1 ANSWER
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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You may be investigated as part of your sister's investigation but as long as you qualify for the tax exemptions - the children lived in your home for 50% of the year and you provided more than 50% of their support. You haven't done anything wrong.
Answered on May 24th, 2017 at 5:33 AM