Someone I know who didn't work at all last year used TurboTax to file a tax return.they used a business owned by a family member of theirs and they made up their income and made up their deductions they are looking to get eight grand back. This upsets me please tell me the Irs system will catch this.

it is a tax scam; The IRS is paying out billions of dollars in fraudulent tax refunds to identity thieves. The bad guys know that the IRS is unable, given the limited number of its staff it has, to address every single allegation of tax fraud it has. they can be prosecuted for filing a fraudulent tax return on their own behalf or on behalf of a biz. they can be imprisoned for up to five years, fined up to $100k or both. they will also have to pay back taxes and the cost of prosecuting the case. Corps can be fined up to $500k.

Please visit the irs website;
How Do You Report Suspected Tax Fraud Activity?