Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about IRS Tax Penalties and other Tax Relief topics.
By willfully providing the IRS with fraudulent information on your tax return, you are taking part in a potentially criminal penalty situation. Depending upon the severity of the fraudulent information, you may be facing court dates, restitution, and possible imprisonment.
In a situation involving your tax return containing any underpayment of tax due to fraud, the IRS will penalize you a hefty 75% of the underpayment tax amount due.
If you file a joint income tax return, you need to know that this IRS tax fraud penalty (involving underpayment of tax) does not apply to your spouse unless, of course, your spouse is a party to the fraud committed.
I want to know what happens when someone claims way more dependents then who what actually live with them and when they have other rental property that is illegal and they are not paying taxes on it.
If a person claims taxes on a child they did not support, are they subject to imprisonment?
|Sheri Ann Richerson|