Is It Illegal To Fake A Pay Stub? The Repercussions
By Davis Clarkson , September 12 2019
82 million US workers experience paycheck errors. There are times when a pay stub error is an honest mistake, but there are dishonest companies who pay their workers under the table and businesses and individuals who avoid paying taxes. What if you avoid paying business and individual taxes and fake a pay stub? The IRS will find you quicker than you think. Here are the penalties you’ll face.
Making A Fake Pay Stub To Scam the Government
Many businesses, workers and/or contractors fake a pay stub that shows they paid more in taxes than they really did. If this goes unnoticed, then they will receive extra money from the IRS. Unfortunately, this is classified as tax fraud on many different accounts. You’ll likely be subject to hefty fines. Depending on the severity of the fraud and how long you’ve been committing this hoax, you may need to hire a lawyer.
Fake A Pay Stub To Get A Loan
This is a common act of fraud, specifically for individuals. If an individual needs a loan but they don’t qualify because their income isn't enough, they can fake a pay stub to increase their chances of qualifying. However, this is a criminal act. You could face serious fines and even jail time, depending on how much money you borrowed and whether or not you paid any of it back.
Employers Making Fake Pay Stubs
Many employers fake a pay stub because they’re not paying taxes. This not only puts the business in deep waters but also the worker. Unfortunately, for the worker, they’re trusting their employer to pay their taxes and have no idea their employer is committing fraud. In addition, an employer could be running an illegal business. They create a fake pay stub to hide this from their employees.
If you’re an employee, it’s best to hire a lawyer and take this to court. The employer could face serious penalties and even jail time for their fraud.
An Accountant Who Recommends Fraud
Unfortunately, businesses and individuals are often at the mercy of their accountant or tax preparer. Many accountants and tax preparers recommend actions to take to save on your taxes; however, an honest professional will still ensure you’re doing this legally. An example of an illegal accounting practice is advising you to make fake pay stubs and using those to report your income and taxes paid.
If you hire an accountant or tax preparer who commits fraud, you’re often the one the IRS blames unless you can prove this was the fault of the accountant. If your accountant is advising you commit fraud, they’re likely advising their other clients to commit the same crime. If you can prove this was at the expense of the accountant, they could go to prison.
Don’t Fake A Pay Stub
Whether you’re a business or an individual, you only suffer when you fake a pay stub. Need more resources on pay stubs and how to legally create one? Continue reading our website!