Posting a tax violation on social media can land you in big trouble with the IRS, and it can also result in the return you were not meant to file.
The agency warns taxpayers not to heed tips that encourage them to use tax software to fill out W2s with false income information, and some scammers suggest people make up big income and withholding numbers to get big refunds.
W2s are tax forms that employers send to workers, showing their annual earnings and the amount of federal income tax withheld, pension contributions, and more. is displayed. The employee uses this information to fill out Form 1040 – personal income tax return, which contributes to the calculation of their availability. was owed back or, alternatively, owe the IRS. The bigger the catch, the bigger the return can be.
But falsifying information on W2s is a surefire way to get into hot water with the IRS, which takes copies of W2s from employers and matches them with data on individuals’ 1040s, tax and security experts say.
The fraud comes within one year of the tax return 10% down More households are struggling with higher inflation than a year ago.
“There are all these people [on social media] claim to be tax experts, but they’re really drawing attention by showing tax evasion,” said Amir Tarikhat, CEO of a cyber security company. “They’re really not selling anything other than, ‘Follow me for more shenanigans.'”
“It’s definitely bad advice,” he added.
These tricks can lead to tax violations, which could expose the taxpayer to IRS fines and penalties. The agency warned that people using such tactics could face a range of penalties, including a $5,000 fine for filing a minor return, as well as criminal prosecution for filing a false tax return.
Fraudsters may give this to the bank taxpayers By filing a return before the IRS verifies the compliance of the employer’s W2 data, Keith Hall, CEO of the National Association of Self-Employed CPAs, said.
“If you submit a tax return with W2 information that includes withholding, the IRS will process it very quickly before the compliance process,” Hall said. But, he added, “people who do [falsify information] caught in the end.”
He added, “If someone tells you that you can get a big refund by doing a W2, get away as soon as possible.”
Fake employees and non-existent tax credit
Several other W2 tax fraud options are also on the rise, the IRS says.
One version involves people creating fictitious employees pretending to work in the household and filing Schedule H for the household’s tax purposes. The idea is to claim refunds based on fake illness and family wages that they never actually paid.
A second option involves using Form 7202 for sick leave and family leave credits for certain self-employed individuals — but this tax break was only available to self-employed workers in 2020 and 2021 during the pandemic. The tax credit has expired and is no longer available for the 2022 tax year, the IRS said.
“[T]there’s no secret way to get free money or big refunds,” said Acting IRS Commissioner Doug O’Donnell. .”
