“Returns are prepared based on the information provided by the client. At times it was obvious that the info provided to qualify for EITC was bogus. But a person who’d earned $12 - $20,000 and could claim a couple of dependents could easily walk out with $4,000 - $5,000 in EITC.”
Ok, I’m really showing my ignorance here. Don’t you have to give the SSN for any dependents claimed? Is there some work around, where you fill out a form saying you never got the kid a SSN. Haven’t SSN’s been required for a few decades now, meaning that the vast majority of children of dependent age would have a SSN.
It just seems like the IRS must be turning a blind eye to this...because surely they would recognize the signs of fraud.
Yes, SSNs are required for the dependents used to claim EITC. I have no idea what verification procedures, if any, the IRS uses. One false claim I know that was made often was to claim cousins or aunts or uncles as dependents. IIRC, those relations do not qualify as dependents for EITC, but the client would just put down a cousin and claim the cousin was a brother or sister.
Another fraud is for two unmarried filers who are living together, to both claim Head of Household, for which they must be living apart and supporting separate households, the entire year IIRC.
(I'm fairly confident my details are correct, but it's been four years since I did any tax work.) And I do think the IRS is turning a blind eye.