MORE ON THE DEBATE ON INMATES & FEDERAL TAXES
Form 4852 has to be used because the inmate does not have a W2 form....its a substitution form... All I know is Jimmy had to have this attached to his 1040EZ along with his letter stating he is a inmate...here is the form...
(http://www.angelfire.com/fl3/starke/F4852.pdf)
Hi Heidi,
OKAY, after checking around I found this for 2000 from the IRS:
http://dcfs.co.la.ca.us/Board/Internal_Revenue_Notice1015.doc.How Do My Employees Claim the EIC?
Eligible employees claim the EIC on their 2000 tax return. Even employees who have no tax withheld from their pay or owe no tax can claim the EIC and get a refund, but they must file a tax return to do so. For example, if an employee has no tax withheld in 2000 and owes no tax but is eligible for a credit of $797, he or she must file a 2000 tax return to get the $797 refund.
Earned income for this purpose does not include amounts paid to inmates in penal institutions for their work.
Ok. I need to make sure I'm understanding this correctly. For about the past two years my husband has been working for Unicor at the USP in Terre Haute. You're saying that he is eligible to file a tax refund for this income? Do they take federal taxes out of this pay?
Prior to him working for Unicor he had held other jobs within the institution as well. If this is true then where do you get the documentation stating his total earned income for the year (w-2)?
Should a joint return be filed (or amended) or should a separate return be filed for him alone?http://www.irs.gov/pub/irs-pdf/n797.pdf
Who May Claim the EIC
You may be able to claim the EIC for 2002 if you worked
and all three of the following conditions apply. But you
cannot claim the EIC if you file either Form 2555 or Form
2555-EZ (relating to foreign earned income). You also
cannot claim the EIC if you are a nonresident alien for any
part of 2002 unless you are married to a U.S. citizen or
resident and elect to be taxed as a resident alien for the
entire year. (Continued on back.)1. Your 2002 earned income and adjusted gross income
are both under $29,201 ($30,201 if married filing jointly) if
you have one qualifying child; under $33,178 ($34,178 if
married filing jointly) if you have more than one qualifying
child; under $11,060 ($12,060 if married filing jointly) if you
do not have a qualifying child.Note: Earned income for this purpose does not include
amounts paid to inmates in penal institutions for their work
and amounts received as a pension or annuity from a
nonqualified deferred compensation plan, a
nongovernmental section 457 plan, or nontaxable earned
income. To find out who is a qualifying child, see the
back of this notice.
2. Your filing status is any status except married filing a
separate return.
3. You, and your spouse if filing a joint return, were not
a qualifying child of another person.
If you do not have a qualifying child, you must also
meet these conditions.
You, or your spouse if filing a joint return, were at least
age 25 but under age 65 at the end of 2002.
You, and your spouse if filing a joint return, cannot be
claimed as a dependent on someone else’s 2002 tax return.If eligible, you can claim the EIC to get a refund even if
you have no tax withheld from your pay or owe no tax. For
example, if you had no tax withheld in 2002 and owe no
tax but are eligible for a credit of $791, you must file a
2002 return to get the $791 refund.EIC with your pay.
If you expect to have a qualifying child
and be eligible to claim the EIC for 2003, you may be able to get part of it in advance with your pay. For details, get Form W-5, Earned Income Credit Advance Payment Certificate, from your employer, by calling the IRS at
1-800-829-3676, or from the IRS Web Site at
www.irs.gov.If you get the EIC with your pay, you must file a 2003 tax return.
How To Claim the EIC
If you are eligible, claim the EIC on your 2002 tax return. If you have a qualifying child, you must also fill in Schedule EIC and attach it to your return.
I am sorry to say this was announced in May of 2003! I am only on 3 Yahoo Groups for Prisoners, so can you please forward this to other Groups besides PRUP, California_Families and Facts1.
When it is to good to be true, I always try to find out if it really is true! If you want to read the whole article, then check out the URL:
http://www.larrycalloway.com/column.html?_recordnum=23
Subsequent sessions of the legislature embellished Boyle's idea with other rebates, including a medical rebate, available to almost all New Mexicans who filed income taxes. Eventually, however, the legislature took back the rebates, claiming to consolidate them, and created the scaled down low-income comprehensive tax rebate (LICTR).
The Attorney General's announced investigation into prisoners and others filing for the credit, which is available as a payment whether you owe taxes or not, could be the last straw of corruption and bureaucratic mishandling, spelling its doom.AND I ALSO FOUND THIS:
Prisoner Filed False Tax Returns
On March 20, 2002, in Greenville, NC, Walter Randolph Williams, III, was sentenced to 34 months in prison followed by one year supervised release and ordered to pay restitution to the IRS in the amount of $22,117.79. On December 17, 2001, Williams pled guilty to aiding and abetting in the preparation of false federal tax returns.
While serving a prison sentence on filing false North Carolina state tax returns, Williams prepared approximately 20 false federal income tax returns on behalf of fellow prison inmates.
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Inmates have absolutely no rights to an "income tax refund" based on prison or UNICOR wages. No, tax, no withholding, no W-2s, no refunds. Plain and simple: prison and UNICOR income is NOT considered wages.
Inmates - especially those without income - have no obligation to file tax returns while incarcerated. If they choose to do so, especially fraudulent returns, scrutiny should not be unexpected.
Howard O. Kieffer
Federal Defense Associates
714-836-6031 x 250
Facsimile 714-543-5890
http://www.guiltyornot.com
hkieffer@dcounsel.com
We concur with this undisputed fact.
National Judicial Review
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CORRECTIONS BREAKS INCOMETAX FRAUD RING
The California Department of Corrections (CDC) today announced it has broken a large inmate conspiracy to defraud the Internal Revenue Service (IRS).
"I want to give credit to our professional staff who uncovered this criminal activity last November, and worked diligently and professionally to identify those responsible," said CDC Director James H. Gomez. "We are working actively with federal investigators to have the inmates and their crime partners outside the prison charged and prosecuted."
Twenty five (25) inmates at the California Men's Colony (CMC) at San Luis Obispo have been identified as suspects. Six are charged with organizing the conspiracy to defraud the government. Nineteen (19) are being charged with filing one or more fraudulent Federal Income Tax returns.
Inmates filed phony income tax returns and with help from friends and relatives outside of the prison cashed refund checks and divided the money. A total of 48 fraudulent tax returns claiming $122,000 in refunds has been traced to the inmates by the IRS. About $44,000 is believed to have been paid by IRS.
The conspiracy was uncovered in November by CMC prison investigators. To avoid jeopardizing a joint investigation with the Internal Revenue Service Criminal Investigations Unit, no action was taken against inmate suspects until this week. This week 25 inmate suspects were rounded up at the prison and confined to cells away from the rest of the prison population.
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Thank you for that research.
However, it is legal to file a FEDERAL INCOME TAX RETURN while incarcerated. We already established that. What is not legal is fraudulent returns, or claiming the EIC.
The article you found is at least 8 years old. I remember when it happened. These prisoners filed fraudulent returns with information that was totally made up. I hope that people will be able to make the distinction between filing for regular tax refunds and filing for the EIC (Earned Income Credit). Only regular tax refunds are legal if the only income received during the tax year was income as a prisoner. EIC is not.
I hope that explained it a little better:-)
Heidi Jones
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