Fraudulent tax returns occur when individuals or businesses intentionally provide false information on their tax filings to reduce their tax liability or receive undeserved refunds. This can include inflating expenses, underreporting income, or claiming deductions that are not legitimate. Such actions violate tax laws and can lead to severe penalties. The Internal Revenue Service (IRS) actively investigates fraudulent tax returns to protect the integrity of the tax system. Consequences for committing tax fraud can include hefty fines, interest on unpaid taxes, and even criminal charges, which may result in imprisonment.