Could you give me an example...because I am not seeing anything that could open them up to tax fraud...not with a child living with them, supported by them, and that is a niece or nephew, even if they are dumb enough not to follow our advice about the AOP and BC. Its paternity fraud all the way, but I don't see ANY possibility of tax fraud unless you can come up with an example that I am not seeing now.
That's because, as usual, you're making assumptions. You're assuming that the child would be living with and supported by OP's husband. Yes, that's one of the things they're considering, but it's not clear that that is what they would actually do.
If hubby put his name on the birth certificate and then claimed the child on his taxes but the child DIDN'T live with him, that would be fraud. Clear and simple.
Do I know that this will happen? No. That's why I said COULD instead of WOULD.
Do you know that it will NOT happen? Nope.
Yes, I did neglect to state that the putative father would have to be involved for an adoption...at a minimum by publication if he is unknown or whereabouts unknown. Custody could be a different story as custody is fluid.
Mom could probably not give custody to OP and hubby without at least a token effort to find Dad.