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.

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