Twist on tax-related scams
2019 – 03/12 Here’s a twist on tax-related scams, from the IRS’s annual “Dirty Dozen” list of common tax scams. The IRS explains that some taxpayers engage in schemes that involve falsifying income. The idea is to maximize a refundable credit, such as the Earned Income Tax Credit, by inflating their income falsely. Taxpayers caught doing this may have to repay the inflated credits, plus penalties and interest, and may face criminal prosecution.