Appear lately to be untruthful in report? (3,2,5)
I believe the answer is:
lie in state
'appear lately' is the definition.
(as in a dead or 'late' person lying in state)
'to be untruthful in report?' is the wordplay.
'to be untruthful' becomes 'lie'.
'report?' becomes 'state'.
'lie'+'in'+'state'='LIE IN STATE'
(Other definitions for lie in state that I've seen before include "rest in place of honour when dead" , "(Of body) be placed on public view before burial" , "late rulers?" , "(Of corpse) receive honour before burial" .)