The IRS issued an alert warning of scams encouraging taxpayers to put false wage information on tax returns to claim tax credits. The IRS will assess a wide range of penalties and pursue criminal prosecution against anyone who files a false tax return.
One scheme encourages people to use tax software to create a fake Form W-2 with large income and withholding. The scammers encourage people to file the fake tax return to get a substantial refund due to the large amount of withholding. Another scheme involves people making up employees employed in their household and trying to claim refunds based on sick and family wages never paid.
People who fall for these schemes and think better of them can amend a previous tax return or consult a trusted tax advisor for assistance.