The IRS categorizes a tax return containing inaccuracies that could lead to overstated credits or understated income as “potentially abusive.” It labels a return as “fraudulent” if the taxpayer attempts to file using another person’s Social Security number or includes information that has no basis in fact. Participating in an illegal scheme to evade taxes can result in penalties, repayment of the taxes owed and possible criminal prosecution. Under its e-file program, the IRS may flag both types of questionable returns, and whistleblowers may report suspected violations. For additional information from the IRS: https://bit.ly/3So8OQY
