What Is Tax Fraud?

Tax fraud is when a business entity or individual intentionally and willfully falsifies information on their tax return in an attempt to lower their tax obligation. Tax fraud basically involves lying on a tax return in order to avoid paying the entire tax liability.

What Are Some Examples of Tax Fraud?

Some examples of tax fraud include:

• Claiming personal expenses as business expenses
• Making false accounting entries
• Claiming false deductions
• Hiding assets
• Purposely failing to file an income tax return
• Using a false Social Security number
• Deliberately omitting or underreporting income

What Is A Tax Scam?

A tax scam is a scam where an identity thief files fraudulent tax returns in your name and steals your tax refund. Scammers may attempt identity theft via phone calls or emails that claim bogus issues regarding your tax documents or returns.

What are the Most Common Tax Scams?

Being aware of common tax scams and knowing how to effectively address them can help you protect yourself and your information during tax season. Here is a list of the most common tax scams that you should know of.

• Phone scams from fake IRS agents
• Emails designed to steal sensitive personal details
• Bogus charities that ask for donations
• Claims of receiving a higher tax refund than you’re due.