Page 30 - Avoid False Claims
P. 30
W HAT IS THE OVERSTATED
W ITHHOLDING SCAM ?
A9. The Overstated Withholding scam is a recent scheme circulating on
social media encouraging people to use tax software to manually fill
out a Form W-2, Wage and Tax Statement, or other information
returns, for example Form 1099-NEC or other Form 1099s listed below,
to include false income and withholding information.
- In this Overstated Withholding scheme, scam artists suggest
people make up large income and withholding amounts as well as
the fictional employer supplying those amounts. Scam artists then
instruct people to file the bogus tax return electronically, in hopes
of getting a substantial refund due to the large amount of
fraudulent withholding.
- The IRS verifies the withholding claimed on tax returns. If the IRS
cannot verify the wages, income or withholding credits entered on
the tax return, the tax refund will be held pending further review.
Taxpayers should always file a complete and accurate tax return.
Utilize legitimate information returns, such as Form W-2 issued
from an employer, to complete returns correctly.
TRAINBYUS: TRANSFORMING DIGITAL LEARNING
