what happens if someone lied about paying social secutryi to the IRS nad got the refund back already?

Question

She used turbo tax and just made up a number to get back..she said she was on social secuirty and used form 1099-ssa..but the thing is she was never on social security she made the whole thing up

Answer 1

You really need to be more specific! However it would be good advice for such a person to file an amendment and correct the situation prior to the IRS discovering it on their own.

Answer 2

Sounds more than a little strange - it sounds like you're saying that she claimed that she had income that she really didn't. That would either do nothing to her tax, or would INCREASE it. Social security income doesn't give you EIC, so there would be no advantage to her in doing this.

If she claimed that she had money withheld from social security payments, she has about 100% chance of getting caught when they match up returns to other W-2 and 1099 info - and they DO match it. At that point she'll hear from the IRS, at a minimum demanding repayment plus interest and penalties, but also possible prosecution for fraud since there's no real way she can claim this was just an honest mistake. It could be a year or more before the match is run, but she WILL get caught.

Her best option at this point is to file an amended return showing actual numbers, and pay back anything she got that she shouldn't have, BEFORE the IRS catches up to her.

Answer 3

If they lied to get a refund, that is tax fraud. The person will have to pay the money back, plus interest and lots of penalties. They could also go to prison.

There is no statute of limitations on tax fraud. And the IRS has no sense of humor when it comes to social security taxes. It would be best for the person to file an amended return, pay back the money, and make it right BEFORE the IRS finds out.

Answer 4

If a person made up Social Security payments that they pretended to receive, this would not result in a refund to them.

If a person pretended to have income and got a refund based on that, the IRS may or may not catch it. If they made up information on a W-2 the IRS will eventually catch it since that date is cross-checked with the employer. If they made up self-employment income, it is less certain that the IRS will catch them.

A person who submits a fraudulent return can be subject to fines and penalties forever, there is no statute of limitations on fraud.