TAX FRAUD; TAX FRAUD OCCURS WHEN AN INDIVIDUAL OR BUSINESS ENTITY WILLFULLY AND INTENTIONALLY FALSIFIES INFORMATION ON A TAX RETURN TO LIMIT THE AMOUNT OF TAX LIABILITY. TAX FRAUD ESSENTIALLY ENTAILS CHEATING ON A TAX RETURN IN AN ATTEMPT TO AVOID PAYING THE ENTIRE TAX OBLIGATION. EXAMPLES OF TAX FRAUD INCLUDE CLAIMING FALSE DEDUCTIONS; CLAIMING PERSONAL EXPENSES AS BUSINESS EXPENSES; USING A FALSE SOCIAL SECURITY NUMBER; AND NOT REPORTING INCOME.