Filing a tax return can be stressful for millions of Americans, as knowing the up-to-date tax rules is crucial. People often accidentally make a mistake on their return which might delay the process, or worse, the IRS would flag it.
That being said, taxpayers are expected to know everything and be prepared for how to file their tax returns as the 2023 tax season continues.
Also Read: 2023 Tax Season: Income Tax What and How it Works?
Activities that Are Deemed Illegal or Suspicious
The IRS is always looking for potential violations or suspicious activity, regardless of if it’s intentional or not. The following activities should be avoided when filing tax returns.
- Kickbacks
- False deductions or exemptions
- An altered or false document
- Failure to pay tax
- Unreported income
- Failure to withhold
- Failure to follow the tax laws
- Organized crime
Rewards can be claimed for those who correctly report an individual or business committing tax fraud. (Photo: Wall Street Prison Consultants)
See: 2023 Tax Season: Tips to Pay Lower Percentage in Taxes
The IRS again urged taxpayers to file electronically to avoid common errors and hasten the return process.
File electronically to avoid common errors that could delay the processing of your #IRS tax return: https://t.co/3uU16CfYuC pic.twitter.com/WAEXvP5D3n
— IRSnews (@IRSnews) March 5, 2023
If you know an individual or business who commits defraud or other illegal activities, such as abusive tax promotion, avoidance schemes, fraudulent activity, or an abusive tax scheme by a tax preparer. In that case, you can report them through the 3949-A form. The IRS ensured the confidentiality of the identity of those who reported.
According to Marca, the IRS would reward those who correctly report a person or business committing tax fraud. The reward can be claimed using Form 221.
Read More: 2023 Tax Season: What Happens If You Don’t Pay Your Taxes?
