Crimes; create for unauthorized use of minor's name and social security number as dependent on income tax return.
Impact
The proposed bill introduces penalties for violations, which include fines of up to $5,000 and/or imprisonment for up to one year in county jail. The enforcement of such penalties is intended to deter individuals from engaging in fraudulent practices that exploit minors. By criminalizing this specific behavior, the bill enhances the legal framework surrounding tax fraud and the protection of minors' identities.
Summary
House Bill 640 seeks to address the unauthorized use of a minor's name and social security number on income tax forms. Specifically, the bill prohibits any person who is not legally entitled to use a minor's name and social security number from doing so as a dependent on an income tax return. This legislation aims to combat fraudulent activities where individuals wrongfully claim minors as dependents to receive tax benefits they are not entitled to.
Contention
While the bill aims to provide a safeguard against fraud, there may be concerns regarding the implementation of penalties and how they are enforced. Discussions around this bill could revolve around the potential for misunderstandings or disputes over who is considered 'legally entitled' to use a minor's information. Another point of contention could be the burden placed on families who may have legitimate reasons for filing taxes in such a manner, raising questions about the balance between fraud prevention and lawful tax practices.