Are you sure that the tax return you are about to file is correct and doesn’t have any errors?
Sometimes, it is hard to be 100% sure.
Well, you see, when a taxpayer files their return, he or she needs to include every income detail and the taxes paid throughout the financial year. These income details will consist of domestic and foreign transactions, and hence the taxes levied will also be different.
If somehow any of the detail is missing or manipulation has been done with the taxes being paid, the return can be taken for a review by the IRS under the rules of submitting an incorrect tax return.
Here, in this article, we will give you details regarding false returns, their types, the penalties you can be assessed, and the aftermath.
A false return is a tax return where some details mentioned are either mismatched with the actual data or manipulating incomes and taxes paid. Intentionally submitting a false return leads to taxation fraud. Taxpayers should be conscientious and try their very best to avoid errors.
If you are submitting a falsified tax return to the IRS, and if you are caught during screening, you will be penalized. The penalty will depend on the type of errors present in the false returns and whether it was intentional.
Your identity numbers and tax information are confidential. Regardless, return files are screened and scrutinized by the IRS department. They employ different techniques to check whether the return is correct and complete or not.
Here are some ways of how the IRS determines a false tax return after it is filed:
How would you know that you may be penalized for filing false tax returns?