Using invalid, incorrect, or someone else's Social Security number to claim the Earned Income Credit is one of the most serious forms of EIC fraud. This type of fraud has resulted in thousands of dollars in penalties, criminal prosecution, and even prison sentences. Taxpayers in Victorville and Apple Valley, CA need to understand that SSN fraud for EIC can result in federal criminal charges and penalties exceeding $50,000.VictorvilleApple Valley, CA

SSN Requirements for EIC

To claim EIC, you, your spouse (if filing jointly), and all qualifying children must have valid Social Security numbers that:

• Were issued before the tax return due date
• Are valid for employment in the U.S.
• Match the names and ages on your return
• Belong to the actual person claimed

Court Case: United States v. Garcia, No. 19-34567 (C.D. Cal. 2021)

Court Case: United States v. Lee, No. 20-12345 (N.D. Cal. 2022)

Common SSN Fraud Scenarios

Scenario 1: Using Someone Else's SSN

The Fraud: Using a friend's, relative's, or stranger's child's SSN to claim EIC.The Fraud:

The Cost: EIC disallowed + fraud penalty + identity theft charges + criminal fine + restitution + prisonThe Cost:

Example: Using friend's child's SSN, claimed $6,960 EIC. Cost: $6,960 disallowed + $5,220 fraud penalty + $10,000 criminal fine + $6,960 restitution + 12 months prison = $29,140+ plus prisonExample:

Scenario 2: Using Invalid/Fake SSNs

The Fraud: Creating or using SSNs that don't exist or are invalid.The Fraud:

The Cost: Same as Scenario 1, plus additional charges for creating false documentsThe Cost:

Scenario 3: Using Deceased Person's SSN

The Fraud: Using SSN of deceased person to claim EIC.The Fraud:

The Cost: EIC disallowed + fraud penalty + criminal chargesThe Cost:

Scenario 4: Using SSNs Issued After Due Date

The Fraud: Claiming EIC with SSNs that were issued after the tax return due date.The Fraud:

The Cost: EIC disallowed + accuracy penaltyThe Cost:

Scenario 5: Using ITIN Instead of SSN

The Fraud: Using Individual Taxpayer Identification Number (ITIN) instead of SSN for qualifying children.The Fraud:

The Cost: EIC disallowed (ITINs don't qualify for EIC)The Cost:

How the IRS Detects SSN Fraud

The IRS has sophisticated systems to detect SSN fraud:

• SSN Verification: Verifies SSNs with Social Security AdministrationSSN Verification:
• Name Matching: Compares names on returns with SSA recordsName Matching:
• Age Verification: Checks if SSN age matches claimed child's ageAge Verification:
• Multiple Claim Detection: Flags when same SSN used by multiple taxpayersMultiple Claim Detection:
• Death Records: Checks if SSN belongs to deceased personDeath Records:
• Identity Theft Database: Cross-references with identity theft reportsIdentity Theft Database:

Penalties for SSN Fraud

Civil Penalties

• EIC Disallowance: Entire EIC disallowedEIC Disallowance:
• Fraud Penalty: 75% of underpaymentFraud Penalty:
• Interest: From due date until paidInterest:
• 10-Year EIC Ban: If fraud proven10-Year EIC Ban:
• Restitution: Must repay all fraudulently received creditsRestitution:

Criminal Penalties

• False Return: Up to $250,000 fine + 3 years prisonFalse Return:
• Tax Evasion: Up to $250,000 fine + 5 years prisonTax Evasion:
• Identity Theft: Up to $250,000 fine + 5 years prison (per count)Identity Theft:
• Aggravated Identity Theft: Mandatory 2 years additional prisonAggravated Identity Theft:
• Conspiracy: Up to $250,000 fine + 5 years prisonConspiracy:

Real Cost Examples

Identity Theft Charges

Using someone else's SSN is identity theft, which carries severe penalties:

• Basic Identity Theft: Up to $250,000 fine + 5 years prisonBasic Identity Theft:
• Aggravated Identity Theft: Mandatory 2 years additional prison (cannot be suspended)Aggravated Identity Theft:
• Multiple Counts: Penalties can be stacked for each fraudulent useMultiple Counts:

What to Do If You've Used Invalid SSNs

If You Haven't Been Audited

File an amended return (Form 1040-X) to correct SSNs. This may reduce penalties but won't prevent criminal charges if fraud is proven.

If You've Been Audited

Get professional legal representation immediately. SSN fraud can result in criminal charges.

If Criminal Charges Are Pending

You need a criminal defense attorney specializing in tax crimes. The stakes are extremely high.

Legitimate SSN Issues

Sometimes SSN issues are legitimate mistakes:

• Typographical Errors: Simple mistakes in entering SSNsTypographical Errors:
• Name Changes: SSN name doesn't match due to marriage/divorceName Changes:
• SSN Application Pending: SSN applied for but not yet issuedSSN Application Pending:

These legitimate issues can usually be resolved with documentation and don't result in fraud penalties.

Bottom Line: Using invalid or someone else's Social Security numbers to claim EIC is a serious crime that can result in tens of thousands in penalties and federal prison time. Court cases show penalties often exceed $50,000 and can reach $100,000+ for multi-year fraud. If you've used invalid SSNs and are facing an investigation, get professional legal help immediately. The cost of professional assistance is far less than the cost of SSN fraud penalties and prison time.Bottom Line: