Taxes 2023: These Fake ‘Tax Hacks’ Could Cause Serious Problems with the IRS
The so-called tax hacks advertised on social media can not only get you into big trouble with the IRS, but can also prevent you from providing the juicy refunds the IRS claims to provide.
agency is caveat Taxpayers should be careful not to be misled by advice to use tax software and enter false income information into W2. Some scammers suggest setting large income and withholding amounts to get large refunds.
A W2 is a tax return sent by an employer to an employee that shows annual income, amount of federal income tax withheld, retirement benefits, etc. The employee uses that information to complete Form 1040 (Individual Income Tax Return). obliged to return Or, alternatively, they owe the IRS money. The higher the withholding amount, the larger the refund can be.
But creating false information about W2 is a sure-fire way to get along with the IRS, which receives copies of W2 from employers and matches it to individuals’ 1040-filed data. tax and security experts said.
Fraud occurs in the year the tax refund is made. 10% down While many households are suffering from high inflation,
“There are all these individuals [on social media] “They don’t really sell anything other than ‘follow me to find out more tricks,'” said Amir Tarrigat, CEO of cybersecurity firm Agency.
“It’s definitely bad advice,” he added.
These tactics lead to tax violations and ultimately taxpayers facing IRS penalties and fines. Officials say those who use such tactics face various penalties, including a $5,000 fine for filing false tax returns and the risk of criminal prosecution for filing false tax returns. I warned you of the possibility.
scammers are tax filer According to Keith Hall, CPA and CEO of the National Self-Employed Association, filing a return can help keep track of time before the IRS sees matching data from employers’ W2. .
“If you submit a tax return that includes W2 information, including tax withholding, the IRS will process it fairly quickly, prior to the reconciliation process,” Hall said. However, he added: [falsify information] eventually caught. “
He said, “If someone tells you that you can get a big refund by configuring W2, walk away ASAP.
Fake employees and nonexistent tax credits
Several other variations of W2 tax fraud are also on the rise, according to the IRS.
One version involves people filing Schedule H of the Household Employment Tax, making up fake employees who are allegedly working from home. The idea is to claim reimbursement based on fake sickness or family wages that you didn’t actually pay.
A second variation is to use Form 7202 for certain self-employed sick leave and family leave credits, but this tax credit is only available to self-employed people in 2020 and 2021 during the pandemic. I made it. The tax credit has since expired and is no longer available for the 2022 tax year, the IRS said.
“[T]There are no secret ways to get free money or large refunds here,” IRS Deputy Commissioner Doug O’Donnell said in a statement. .”
https://www.cbsnews.com/news/taxes-2023-irs-w2-scam/ Taxes 2023: These Fake ‘Tax Hacks’ Could Cause Serious Problems with the IRS