If you count yourself among the many people across Minnesota who make occasional guesses or estimates when filing your taxes, you are not alone. Taxes can prove tremendously complicated, and unless you make your living working as, say, an accountant, you make an occasional error here and there when you file. Even if the errors you make are not intentional, though, you can still face stiff penalties for lying or providing false information when filing your taxes.
According to Credit.com, if you file your taxes and the Internal Revenue Service spots any red flags, such as missing information, inaccurate or inappropriate deductions or what have you, it may lead to an audit. During an audit, you can expect the IRS to go over your taxes with a fine-tooth comb, and this can lead you to owe more money if they find you calculated incorrectly or otherwise misled Uncle Sam. It is also important to note that, during an audit, the IRS can also review past tax returns from as many as six years ago, potentially leaving you on the hook for expenses you did not anticipate.
If your audit reveals miscalculations, inaccurate deductions or other errors, you may have committed tax fraud, and the penalties for this type of crime can be considerable. In addition to having to cover any money you did not pay while filing, you may, too, face steep fines for committing tax fraud in the first place. Depending on the details surrounding your crime, you may also face criminal charges and potential jail time.
While this information about the possible repercussions for lying on your taxes in informative in nature, it is not a substitute for legal advice.