
fraudulent return marker
A fraudulent return marker is a flag that the IRS places on a tax return when it suspects the return may contain false information or has been submitted fraudulently. This can happen if there are significant discrepancies, suspicious claims, or inconsistencies in the reported income or deductions. The marker alerts the IRS to scrutinize the return more closely, potentially leading to an audit or investigation. If a return is deemed fraudulent, it may result in penalties, fines, and legal consequences for the filer. This mechanism helps protect the integrity of the tax system and prevents tax fraud.