The Tax Resources Blog

Archive for April, 2004

Corporation Tax Brackets

Question: A CONCERN: Do unemployed people ever give a false employer tax ID in order to claim an illegal tax rebate?

I’ve noticed after filing my taxes recently that basically anyone could theorhetically lie and say so and so large corporation employed me and took this amount of taxes and paid me this amount in wages. Reasonalbe amounts for withheld money and an a valid employer tax id/number seem to be the only necessary requirements. So is there a way the IRS can monitor and check this? I mean, with large corporations, like WalMart andTarget, how could they know someone was using their name and reputation to do something illegal?

* Also, this question is in relation to simple taxes like online filing and 1040easy. When someone uses those, they require very little information simply because a person is stating they haven’t made very much this year compared to other tax brackets.

I assume there has to be a system to stop this? Do companies do audits themselves to see how many claimed them for the IRS? or am I wrong, and sadly, large amounts of people employ these underhanded methods?

Answer: Employers send w-2′s to the IRS in there employee’s names. When a person lies about working there the IRS will flag the return since there isn’t a matching w-2 from the employer.. Basically you will get caught, fined and maybe jail time for tax fraud.

Federal Tax Rates 1913 to 2009 — highest rate 92%