Tax Fraud Detection

Tax fraud detection involves identifying illegal activities where individuals or businesses deliberately falsify information on tax returns to reduce tax liability. Authorities, such as the IRS, use various techniques like data analysis, audits, and suspicious activity reports to uncover inconsistencies or anomalies in filed returns. Advanced algorithms and machine learning can analyze large datasets to spot patterns indicative of fraudulent behavior. Tax fraud detection aims to ensure compliance with tax laws, promote fairness, and recover lost revenue, ultimately maintaining the integrity of the tax system.