what happens if the IRS finds you made a false return? Not for me a friend did HONESTLY ! ! ! !?

Answer 1

It depends on just what your friend lied about.

At a minimum, he/she would have to pay the back taxes, plus interest and penalties and probably a fine. If the falsification was to get EIC, then the person would be barred from getting EIC in future years up to 10 years.

Prison time is a possibility, but not real likely unless the issue was major.

Answer 2

It depends on the gist of that return vs reality. If the return sought to avoid taxes, they could be severely penalized and fined. In the worst case, they could be criminally prosecuted for tax evasion. Normally, they will have to pay a penalty and any taxes owed.

Answer 3

Depends.
First of all, they can audit ALL returns and audit ANYTHING.

Unless there is downright fraud, they will simply tell you this or that is disallowed, recompute your tax, and add penalty and interest. They are experience peopel, they can tell if you
are trying to pull one over, or if you just didn't know you couln't take something off.

I would suggest your friend to STFU or somebody might turn him in.

Answer 4

Depending on what he did. Could be a major monetary fine or jail time and monetary fine.