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Tax statements are crucial not only to taxpayers, but also tax collectors who rely on the forms' information to verify what people put on their returns. The IRS today issued a warning about a new scam involving fake W-2 forms, the document used by taxpayers and tax departments to verify a taxpayer's earnings. The W-2 info is the main earnings data entered on annual tax returns by millions of filers. In addition to the income data, the W-2 includes data on taxes withheld on that income, as well as Federal Insurance Contributions Act taxes, aka the amounts that go to Social Security and Medicare programs, taken out of the workers' pay. W-2 forms also may contain information on workplace benefits and tip income if gratuities as part of your employment. One variation involves people using Form 7202, Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals, to claim a credit based on income earned as an employee, and not as a self-employed individual. These credits were available for self-employed individuals for 2020 and 2021 during the pandemic. However, this tax break is no longer in effect and cannot be claimed on 2022 tax returns. And in addition to not getting a bigger refund, the conned taxpayers could face additional monetary and criminal charges for using illegally tweaked W-2 data. The IRS and state tax officials compare the various W-2 data they get from employers with what taxpayers enter on their annual returns. When the fake W-2 information doesn't match the real numbers supplied by employers, taxpayers could face charges for filing false tax returns. "[T]here is no secret way to get free money or a big refund. People should not make up income and try to submit a fraudulent tax return in hopes of getting a huge refund," added O'Donnell. Making tax amends: If you've filed a return with wrong W-2 data, consider contacting a legitimate tax professional. That tax pro can help you amend your incorrect tax return. high quality imitation bagshigh imitation burberry bag
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