Inflating Credits and Deductions will Sink Your Financial Future


        Falsely inflating tax credits and deductions is something that is so easy to do. It can be tempting to lower your tax responsibility in this way, but this scheme is well-known to the Internal Revenue Service (IRS). Therefore, it has earned a spot on the IRS 2019 “Dirty Dozen” list of scams.

          Often this scam will manifest itself as overstating charitable contributions or very large business expenses. Sometimes Tax Credits are claimed falsely. These tactics are seen throughout the year, but they commonly peak at this time. When these deceptions are found out, the penalties are steep and severe.

          The Tax filer may be cited 20% of the amount of the credit that they falsely claimed. This would be in addition to paying the full amount of the tax owed. If it is determined that a fraudulent Tax Return was filed willfully, then more fines can be applied, and a criminal investigation would begin. Filing an accurate Tax Return is always the best choice to make.

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