Which of these actions could lead to a penalty for excessive or false loss claim?

Claiming expenses not incurred can indeed lead to a penalty for excessive or false loss claims. Tax regulations require that all deductions claimed must be for expenses that were genuinely incurred in the process of earning income. When a taxpayer submits claims for expenses that have not been incurred, they are not only misrepresenting their financial situation but also violating tax laws, which can lead to significant penalties, interest charges, and even potential criminal charges in severe cases.

This option highlights the importance of integrity and accuracy in tax reporting. Tax authorities have mechanisms in place to detect fraudulent claims, and submitting false information undermines the trust and expectations placed on taxpayers to be honest in their dealings with tax reporting.

The other actions mentioned, such as providing accurate income information, taking legitimate business expenses, and filing returns on time, align with responsible tax practices and would not typically lead to penalties unless paired with other forms of misconduct.