Will I be held responsible if my employer is found to have given false/incorrect info during tax audit?

Question

My employers are being audited by the IRS. They have been telling me to enter info onto spreadsheets and then sending that to their accountant. That along with photos that show inaccurate "items" they will try to claim. I have not felt comfortable doing what they ask. One of my co workers told me if the IRS finds them guilty - that I am at fault too. I am just an office worker and did so under duress - as I need my job. Not all the information is incorrect - but I have seen more than I cared to see with "claiming this here and hiding that there". Am I legally responsible too for typing their incorrect information and emailing it to their accountant?

Answer 1

Look into if your company has a fraud hotline. If it is a public company, they are required to have a whistleblower hotline to the audit committee. You could also report the info to the IRS as in some circumstances the IRS rewards employees who are whistleblowers.

The danger to you is if the false entries are discovered and you are blamed for the errors and fired so the company looks good to the IRS just so they can try and avoid penalties.

Answer 2

Unfortunately, yes you are. You knowingly sent false information and didn't speak up. I know it puts you in a very sticky spot but if the worst scenario plays out and your employer gets busted, they'll tell you that you still had a choice and you chose the wrong choice.