Your parents they retirement income in china, why when tax filling you say they have no income, to used cheated way get tax return, That is a Tax Fraud, Do not do that again. IRS already try to hire more workers who have chinese background, because they know more about cheated the way often be used by like you did US citizens and greencard holder need report their income everywhere, for california now they need you to provide
document to prove that person is real poor, no income. If you try to get fake document in china, that will be another fraud, becareful someday will be ask pay back + pennalty.
your parents are still young, you can use that $1000 you gave to them plus retire income in china help them fill tax in US separetely, they may don't need pay much tax, you don't worry Tax Fraud Charge, 10 years later your parents will have every benifit they deserve.