Improper Use of Business Deductions

Improper Use of Business Deductions or Fake Write-Offs

People trying to deduct non-business expenses — like vacations, clothing, or their personal car — as business write-offs are being watched more closely. AI tools and IRS data matching make it easier to catch now.

If it's proven that you intentionally used false deductions to reduce your tax bill, that’s filing a false return, a federal offense with up to 3 years in prison and heavy penalties.