Tax Dictionary – Tax Fraud

IRS Definition

Although not all inclusive, listed below are some of the criminal activities in violations of the tax law:

  • Deliberately underreporting or omitting income
  • Overstating the amount of deductions
  • Keeping two sets of books
  • Making false entries in books and records
  • Claiming personal expenses as business expenses
  • Claiming false deductions
  • Hiding or transferring assets or income

More from H&R Block

Tax fraud is a deliberate act of understating income and/or overstating deductions with the intent of avoiding paying the correct amount of taxes. It is much more than just leaving something off a tax return. The IRS must prove that you intentionally made the error. Tax fraud is a criminal offense punishable by fines and/or prison time.

Need help with an audit? Learn how to handle an IRS audit of your individual tax return or an IRS audit of your business tax return.

Related Topics

Related Resources

Tax Dictionary – 30-Day Letter

A 30-day letter gives you 30 days to respond before the IRS sends a bill. Read the IRS definition and get more insight from the tax experts at H&R Block.

IRS Letter 1962C – Direct Debit Installment Agreement Granted/Revised

Learn more about letter 1962C, why you received it, and how to handle an IRS 1962C letter with help from the tax experts at H&R Block.

Tax Dictionary – Nonemployee Compensation

Understand your tax responsibilities when you receive nonemployee compensation. Read the IRS definition and get more insight from the experts at H&R Block.

IRS Letter 2272C – The IRS Can’t Consider Your IRS Installment Agreement Request

Learn about IRS Letter 2272C, why you received it, and how to address this notice. Get tax help from the tax experts at H&R Block.