Anonymous
Anonymous asked in Business & FinanceTaxesUnited States · 1 month ago

How can the irs know if a tax return was fraudalent or not?

I'm talking about a fraudalent tax return that happened 5 years ago

7 Answers

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  • Amy
    Lv 7
    1 month ago
    Favorite Answer

    Many of the numbers that go onto your tax return are independently sent to the IRS. Your employer reports what your income was, your college reports how much deductible tuition you paid, etc.

    People who are self-employed could lie. But the IRS audits a huge percentage of those returns, and when they do they look back at several years of returns.

    Finally, people who suspect that you lied can report you. 

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  • 1 month ago

    It depends on what the fraud was....

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  • 1 month ago

    They audit it, and ask for documentation of deductions, etc.

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  • 1 month ago

    It audits the return and finds out then or someone rats the taxpayer out.

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  • 1 month ago

    They have a record of who you are, where you live, what you do for a living, every job you have ever had, etc. and much more. Legit employers send them a copy of your tax records every year. The IRS compares your records with all of your employment records, banking records, investment records, etc. If there is any discrepancy, they will either correct your tax return and charge you if they have to redo it completely. If the discrepancy is large, they will audit you.

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  • NA
    Lv 7
    1 month ago

    Gee, LOOK AT IT?

    If you are the guy whose mother added two unrelated children (who didn't even live with him) to his tax return to get a larger refund, yes, it was fraudulent.

    Fix it and pay the money back.  Report the preparer.

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  • Pearl
    Lv 7
    1 month ago

    probably cause they have a lot of experience with that

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