Fudging the numbers: What happens when you lie on your taxes?

From generous estimations to outright lies — what happens when you lie on your taxes? The lure of a lower tax bill or higher tax refund may tempt taxpayers to fudge the numbers on their tax return. However, such maneuvers can come with serious consequences.

How serious are the consequences?

Not surprisingly, the severity of the consequences generally depends on how much was altered on the returns. Rounding up to the nearest ten, for example, may come with a fine. The amount of the fine will depend on how much the change impacted your tax obligations. In addition to the fine, the agency will likely expect you to pay the correct tax amount as well as interest.

In contrast, intentionally failing to report income, could come with prison sentence.

How will the IRS know?

The Internal Revenue Service (IRS) gets a copy of the W-2s and 1099s. Basically, if you get a tax form in the mail, it is like the IRS does, too. As a result, they will be expecting tax returns and already have a pretty good idea of how much you will owe.

What happens if the IRS thinks I lied?

If the agency is concerned with your tax returns, it may conduct an audit. A tax audit generally involves a review of your tax filings. This can include the agency sending you a mailing requesting additional information. In rare cases, it could involve a field agent coming to your door. It will not include an email or text message. Any communication in this form claiming to be from the IRS is likely a scam.

No Comments

Leave a comment
Comment Information
Email Our Team

Contact Us to Get Started Today

Located in the Washington, D.C area, we serve clients in the District of Columbia, Maryland and Northern Virginia, as well as across the country and overseas. For a free initial consultation, call 202-381-1261 or complete our brief online form.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Six Convenient Office Locations in and around the DC Metropolitan Area

Washington, D.C.
1050 Connecticut Ave NW #500
Washington, D.C. 20036

Phone: 202-618-1873
Fax: 888-235-8405
Washington Law Office Map

Columbia Office
10440 Little Patuxent Parkway, Suite 300
Columbia, MD 21044

Phone: 202-618-1873
Phone: 410-497-5947
Fax: 888-235-8405
Columbia Law Office Map

Annapolis Office
839 Bestgate Road
Suite 400
Annapolis, MD 21401

Phone: 202-618-1873
Phone: 410-497-5947
Fax: 888-235-8405
Annapolis Law Office Map

Fairfax Office
8280 Willow Oaks Corporate Drive
Suite 600
Fairfax, VA 22031

Phone: 202-618-1873
Phone: 703-988-4817
Fax: 888-235-8405
Fairfax Law Office Map

Rockville Office
199 E. Montgomery Avenue
Suite 100
Rockville, MD 20850

Phone: 202-618-1873
Phone: 240-599-5009
Fax: 888-235-8405
Rockville Law Office Map

Baltimore Office
400 East Pratt Street
8th Floor
Baltimore, MD 21202

Phone: 202-618-1873
Phone: 443-743-3381
Fax: 888-235-8405
Baltimore Law Office Map