A friend told me that when filing taxes online a person can enter any 9 numbers as a social security number and say that number is connected to their dependent. He said at the time of filing the IRS can't tell if that social security number is valid; it isn't until the IRS is going through everyone's paperwork that the "mistake" may be found. So, my question is if someone did decide to do that what is the consequence if the IRS finds out? Is it jail time or just a huge fine? Im curious because it sounds false; I mean if that's the case wouldn't everyone be doing it?

Doing such a thing is clearly a crime. It is called tax fraud. Jail time is clearly a possiblily. If you have some reasonable explanation, then perhaps you just made a mistake and it wasn't a crime. Monetary penalties are likely. The IRS computers do cross-check social security numbers.

A friend told me that when filing taxes online a person can enter in any 9 numbers as a social security number and say that number is connected to their dependent. He said at the time of filing the IRS can't tell if that social security number is valid; it isn't until the IRS is going through everyone's paperwork that the "mistake" may be found. So, my question is if someone did decide to do that what is the consequence if the IRS finds out? Is it jail time or just a huge fine? Im curious because it sounds false; I mean if that's the case wouldn't everyone be doing it?

Don't do this. You will certainly get into trouble. IRS computers have a huge database, and they will find this out.

Many do do that and find themselves being prosecuted and paying a fine. A short term gain is not worth the long term results of being caught. And whoever does this WILL be caught. There is no such thing as a free lunch.

Agreed.

Sure there is! I get free lunches from the land all the time. Grubs,bison,fish and Llamma's are abundent in my land. So, therefore ergo and to wit, there are such things as free lunch.