Big penalties for false tax returns

The mere suggestion of falsifying documents should be a huge red flag

Photo Courtesy: MGNonline

(CNN) – As you prepare to file your taxes this year, keep in mind that if you don’t play by the rules, you could be in a big trouble.

The head of the IRS is advising taxpayers that when using a tax preparer, the mere suggestion of falsifying documents to reduce tax bills or inflate tax refunds should be a huge red flag.

The IRS says the act of filing a false return can lead to a five-thousand-dollar penalty. Participation in a scam may also lead to interest and penalties on any back taxes you might owe, and possibly criminal prosecution.

Bottom line: never let anyone talk you into claiming deductions or credits to which you’re not entitled, and never let others file a false return on your behalf.

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