The Internal Revenue Service issued a cautionary statement on Tuesday, highlighting the potential consequences for taxpayers who file fraudulent tax returns in an attempt to claim substantial refunds.
The agency emphasized the serious nature of such actions, emphasizing that individuals engaging in this behavior could face criminal prosecution. The IRS specifically warned taxpayers to avoid falling prey to tax scams related to the Fuel Tax Credit, Sick and Family Credit, and household employment taxes.
FOX 4 KDFW reported that “[a]ny taxpayer who the IRS flagged as potentially submitting any of these credits in their returns fraudulently will likely have their refund frozen until taking several steps to resolve the issue.
“If the refund has been frozen, the taxpayer should expect to get one of several letters from the IRS seeking additional information — things like identity confirmation, if they actually qualified for one of the three tax credits, or if they used a tax preparer.
“If a tax preparer was used, the taxpayer will be asked to see if the preparer signed the tax return. If the return is not flagged, the IRS said, it is a red flag that the taxpayer was misled.
“While taxpayers are not required to visit a Taxpayer Assistance Center to verify their identity, they may need to amend their tax return to remove the credit.”
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