Lying to CRA & IRS

[Pursuinghappiness]

This year, my ex and I exchanged tax documentation.

When I got his tax forms (he files in both Canada and US because he works there), I realized that he's misrepresenting his allowable deduction because he's claiming CS using my social insurance and social security number.

I'm concerned because I also file a US tax return every year since I have dual citizenship and I filed showing no taxable income.

My lawyer is sending a letter but she also recommended that I also call the IRS and CRA to ensure I don't get audited in the near future.

Anyone have any experience with this?

[rockscan]

If Im reading this correctly, he cant claim CS.

http://www.cra-arc.gc.ca/tx/ndvdls/t...eng.html#after

[blinkandimgone]

Um, isn't it just plain illegal for him to use your SIN and SS numbers for anything?

[dad2bandm]

I don't understand this scenario. Is he filing tax forms, in your name too?

How can he file in his name, but use your SIN? It wouldn't even match up. Seems like a good way for him to get reviewed, if it even gets that far.

[nfc4ever]

There might be something missing here. No US states of a federal return allow CS to be deducted. However some states, notably California, will allow you to claim the children as dependents for tax purposes if you're paying the bulk of the cost of raising them - read high amounts of CS.

[Pursuinghappiness]

What he's doing is claiming that the offset CS he pays me is SS...so he's deducting it and listing my social security number on the IRS forms...I'm not sure if he's disclosing my Canadian SI number but I only got the reassessment notice , not the whole form.

Basically he's lying and deducting CS by saying its deductible SS.

My lawyer sent a letter telling him that this is a tax violation but I think I should also call and notify both the IRS and CRA.

[blinkandimgone]

I agree, you should absolutely call and notify them. Would you have to provide them with a copy of your agreement? And this would affect your tax returns, would it not - as SS is taxable income to you?

[dad2bandm]

What year was your agreement or order made?
This is treated differently depending on whether it's before or after April 1997.

If it's after, then yes, child support payments would not be deductible. Are the payments clearly differentiated and identified in your order? As CRA (not sure about IRS, but would assume the same) is typically diligent on making one prove they are not child support payments.

[Pursuinghappiness]

This is treated differently depending on whether it's before or after April 1997.

Way after...its only a few years old.

Are the payments clearly differentiated and identified in your order? As CRA (not sure about IRS, but would assume the same) is typically diligent on making one prove they are not child support payments.

Yes, they're clearly defined. He's just lying as per usual.

He lied all over his tax statements. He claims differing amounts for capital gains/losses every year depending on which return you look at because he files both Canadian and U.S. returns. He just never gets caught.

I'm going to actually call CRA and the IRS and let them know what he's doing. I'm pissed because on the US returns, he's using my SS# so it makes it look like I have income I'm not disclosing. On the CRA returns, he's not using my SIN# but I can't see all the schedules he sent so he might have done it on another form.

And they weren't diligent because they didn't catch it.

By the way, he probably did it the last 2 years too...so when they catch up with him, he's going to have a pretty hefty penalty.

[arabian]

FYI - a few years ago when in the throws of litigation with my ex I found out (from Team Leader at CRA) that the "rat" line at CRA regularly discards pretty much any complaint filed by an ex. Of course if you call them they will deny this but I am pretty sure that the complaint goes into the trash a/or goes to into an abyss.

My ex lied on most everything he produced for CRA and I found the most effective way was to have someone who is employed with CRA to put the "nugget" in the system.

[Pursuinghappiness]

FYI - a few years ago when in the throws of litigation with my ex I found out (from Team Leader at CRA) that the "rat" line at CRA regularly discards pretty much any complaint filed by an ex. Of course if you call them they will deny this but I am pretty sure that the complaint goes into the trash a/or goes to into an abyss.

That's unfortunate.

I'll still try and I'll supply my own information to corroborate. Hopefully the IRS will listen if CRA won't.

[arabian]

Ratting on one's ex is not taken seriously by CRA unless it is for BIG numbers.

Probably the same for people ratting on their ex's for defrauding welfare.

BTW - being audited is not a big deal if you have your documentation in order.

[Pursuinghappiness]

Ratting on one's ex is not taken seriously by CRA unless it is for BIG numbers.

I think 54k in fake deductions is pretty big but we'll see. And what's really funny is he doubled the amount in the US and claimed he paid me over 30K in child support last year...lol. So it might be over 90k in the last 3 years to the IRS attached to my SS#. He knows the US government will have issues checking the amounts from Canada since its through FRO.

If I was just trying to bust him....I have years of bullcrap tax returns with over a hundred grand in false capital losses from US investment accounts. I never bothered with those...that's his problem. But using my identification to commit fraud pisses me off.

[arabian]

Then maybe just get a print-out statement from FRO, along with his "phony" return and mail to to IRS? Better yet, ask FRO to mail it? I know in Ontario you guys have assigned case-workers (Alberta there is no file ownership). Perhaps your friendly FRO caseworker will mail it in for you? Perhaps a statement on FRO letterhead will do it?

[arabian]

Your situation makes me think of this little joke I recently received:

A guy is driving around the back woods of Montana and he sees a sign in front of a broken down shanty-style house: 'Talking Dog For Sale 'He rings the bell and the owner appears and tells him the dog is in the backyard.


The guy goes into the backyard and sees a nice looking Labrador retriever sitting there.

'You talk?' he asks.
'Yep,' the Lab replies.

After the guy recovers from the shock of hearing a dog talk, he says 'So, what's your story?'

The Lab looks up and says, 'Well, I discovered that I could talk when I was pretty young. I wanted to help the government, so... I told the CIA.

In no time at all they had me jetting from country to country, sitting in rooms with spies and world leaders, because no one figured a dog would be eavesdropping.'


'I was one of their most valuable spies for eight years running...

But the jetting around really tired me out, and I knew I wasn't getting any younger so I decided to settle down. I signed up for a job at the airport to do some undercover security, wandering near suspicious characters and listening in.

I uncovered some incredible dealings and was awarded a batch of medals.'


'I got married, had a mess of puppies, and now I'm just retired.'

The guy is amazed. He goes back in and asks the owner what he wants for the dog.

'Ten dollars,' the guy says.

'Ten dollars? This dog is amazing! Why on earth are you selling him so cheap?'

'Because he's a Bullshitter. He's never been out of the yard'