GREENFIELD, Mass. (WWLP)- Most would agree that it’s not okay to lie on your tax return, but a recent poll finds some people think it’s OK to cheat on your taxes. 22news reveals the price you’ll pay for lying on your tax return.
The IRS oversight board polled 1,000 people and found that 12% think it’s acceptable to claim bogus deductions and inflate credits. A tax service told 22news the IRS is cracking down on the two most common areas of fraud; falsely claiming dependents and under reporting income.
You’ may get a larger refund, but if you’re caught, you’ll have to pay that money back. Todd Cromack, owner of Liberty Tax Service in Greenfield, told 22News one of the penalties for cheating on your taxes. “When the government issues you a check you’re going to have to if they determine that that dependent can’t be claimed by you, you’re going to have to go and give the money back to the IRS.”
You can also incur extra penalties depending on the case and could even face prison time. Some people say they use professional tax services to avoid any penalties that might occur if their information is filed incorrectly. Timothy Adams told 22News why he prefers a professional tax preparer, “You don’t have to deal with anything and they take the blame if anything goes wrong, so it’s really simple. It’s a little expensive I may say but it’s worth it not to have to deal with any problems if there are any.”
Tax preparers can also be fined. It is $500 for their first offense if they file an incorrect return. The IRS is offering to pay you a reward if you report someone you know is cheating on their taxes.
Liberty Tax Service is offering customer appreciation weeks. Each week a different profession will be honored with a tax return prepared free of charge.