While most taxpayers strive to file honest tax returns, a few try to outsmart the IRS. One man was charged by the IRS with filing false returns for a fictitious company, listing himself as the sole owner. He obtained an employer tax ID number and claimed that the business paid him significant wages, but he never filed required employment tax returns or paid the related tax. His income tax returns for 2016–2019 claimed that the business suffered substantial losses. Based on those returns, he received IRS refunds totaling $390,682. After pleading guilty in the U.S. District Court in New Jersey, in January 2024 he was sentenced to four years in prison and ordered to pay restitution of $390,682.
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