My friend lied about withholdings on 2015 tax return for this year?

Your "friend" will be caught. The government gets copies of Form W-2 and matches up their copy with the taxpayer's tax return. When the "error" is discovered a notice will kick out automatically advising the taxpayer of the mismatched data and requesting repayment of the excess, plus penalties and interest.

If the IRS believes that the "error" was deliberate fraud, the matter can be referred to the US Attorney for possible prosecution for tax fraud. They can also assess a 100% administrative fraud penalty on top of anything that a criminal case decides.

Your "friend' is not the sharpest tool in the shed. While there are types of tax fraud that can be successful -- at least temporarily -- this ain't one of them since the government has full disclosure of all relevant information. It can take several months to a year or so to catch up with him, but it absolutely will eventually.

If it were my "friend," I'd advise him to immediately file an amended return and enclose a check for the excess refund received. Then I'd tell him to cross his fingers that the IRS decides to drop the matter and only bill him for the additional penalties and interest. If the taxpayer comes forward before the IRS discovers the matter they are more likely to let them off relatively easily.

They will absolutely get caught. The IRS gets copies of the W-2 info and their computers match it all up, but it doesn't happen right away. Then they'll be in some pretty serious trouble. At best, they'll have to pay back the money they stole, plus interest, plus penalties. They could be charged with fraud. I would try to talk them out of it.

since IRS is not even ready for business until Tues. he may have filed but won't be processed for some time

he may have lied and thinks he is getting the refund he claimed and he might, but when IRS finally gets the information from SSA and finds out he claimed too much withheld income tax he will have to pay back at least some of it and this might hit him when he is least able to pay it

not a good idea

WHAT A DUMB@SS how can they lie? - Tax withheld is clearly on the W-2 and the IRS gets copies of the W-2 - eventually the IRS will discover what he did and he will have to pay back the illegal refund along with penalty and interest and could get in CRIMINAL trouble. there is no guarantee he will even get it past the IRS - it's one of the easiest things in the world for the IRS to catch. he must be a MORON to not know the IRS GETS A COPY OF YOUR W-2!!! tell him you won't be able to see him on visiting day at the Federal prison

This particular scam is yet another reason the IRS needs to move the filing season to May or at least delay releasing any refunds until the W-2 is received and matched.

The IRS gets their W2, so there is a 100% chance they get caught. They will owe back all they got that they shouldn't have plus interest and penalties.

It may take a while, but they will get caught when the IRS starts tying everything out this summer.

They will owe the money back plus penalties and interest. They may even be charged with criminal fraud.

You can do nothing since it's only verbal heresay to you. Obviously such an action will be found out.

I'd find a better class of friend.

IRS will correct it automatically.