IRS Warns Thousands Could Face Criminal Charges for Filing False Returns

The IRS warned on Tuesday that thousands of taxpayers could face criminal prosecution if they filed false tax returns for high refunds.

In a press release, the IRS reiterated a warning not to fall for tax scams centered around the Fuel Tax Credit, Sick and Family Credit, and household employment taxes.

Despite the warnings, the IRS reportedly came across thousands of dubious claims from taxpayers for credits for which they were not eligible. As a result, the IRS has delayed the refunds and is requesting the taxpayers under investigation to provide proof they are eligible for the credits.

“Scam artists and social media posts have perpetuated a number of false and misleading claims that have tricked well-meaning taxpayers into believing they’re entitled to big, windfall tax refunds,” IRS Commissioner Danny Werfel said. “These bad claims have been caught during our fraud review process. Taxpayers who filed these claims should realize they’ve been tricked, and they face an extensive review process and a long potential wait if they’re owed a refund for other things.”

The Fuel Tax Credit is designed for off-highway business and farming use, the IRS said, and taxpayers who claim the credit are required to have a business purpose and qualifying business activity, like running a farm or purchasing gasoline for aviation purposes. (Read more from “IRS Warns Thousands Could Face Criminal Charges for Filing False Returns” HERE)