Claiming False Tax Deductions on Your Tax Return Will Bring Severe IRS Penalties

If you submit false documents in your tax returns, the IRS will impose severe tax penalties on you upon discovery. The money you save by trying to claim excess deductions (that are not entitled to you) is not worth the IRS trouble you will bring yourself.

CCH ( reports:

Individual Submitting False Documents Liable for Fraud Penalty

An individual who improperly claimed deductions for employee business expenses and who submitted false documents at trial was liable for the fraud penalty. The false documents were ostensibly from the taxpayer’s employer and stated that the employer did not have an expense reimbursement policy for employees. However, the IRS established that the employer did have a reimbursement policy and that the taxpayer had received reimbursement for his expenses. Thus, the IRS provided clear and convincing evidence that part of the taxpayer’s underpayments for the years at issue was due to fraud and the taxpayer failed to establish that any portion of the underpayments was not due to fraud.

More Tax Help, IRS News and Tax Relief Tips:

  1. Michael Rozbruch Interviewed in Opportunist Magazine
  2. Penalty Abatement Helps Taxpayer Resolve Back Taxes
  3. IRS Announces Unprecedented Opportunity for Recession-Burdened Americans to Settle Outstanding Tax Debts
  4. KLOS Tax Tip #44: Individuals Get a Tax Break – But Get Tax Help if You Owe Back Taxes!
  5. Options for Business Owners Struggling to Meet the April 15 Tax Deadline

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One Response to “Claiming False Tax Deductions on Your Tax Return Will Bring Severe IRS Penalties”

  1. Rising Payroll Tax Rates Encourages Taxpayers to Start Their Own Businesses to Take Advantage of Tax Write-Offs | Tax Relief Tips from the Experts at Tax Resolution University Says:

    [...] in IRS trouble because they mis-categorize personal expenses as business expenses. This is a tax crime and is severely [...]

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