Politics & Government
Tax Tips: Avoid the 'Dirty Dozen' - Falsely Claiming Zero Wages
Tax time is here. Check this list of 12 scams that come in many forms during the filing season.
Editor's Note: The following information is provided by the IRS:
Falsely Claiming Zero Wages
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Filing a phony information return is an illegal way to lower the amount of taxes an individual owes. Typically, a Form 4852 (Substitute Form W-2) or a “corrected” Form 1099 is used as a way to improperly reduce taxable income to zero. The taxpayer may also submit a statement rebutting wages and taxes reported by a payer to the IRS.
Sometimes, fraudsters even include an explanation on their Form 4852 that cites statutory language on the definition of wages or may include some reference to a paying company that refuses to issue a corrected Form W-2 for fear of IRS retaliation. Taxpayers should resist any temptation to participate in any variations of this scheme. Filing this type of return may result in a $5,000 penalty.
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