How to Report Someone for Suspected Tax Evasion

Tax identity theft (ID) is another form of tax evasion. This happens when someone steals your Social Security number to get a tax refund. Report this type of scam using IRS Form 14039. The sales tax supports a wide range of government services, from parks to prisons. In addition, sales tax is an important source of revenue for many cities and counties that depend on revenue from police and fire, courts, roads, health care, and more. Tax evasion hurts us all by reducing the amount of money available for these essential services, and honest businesses are disadvantaged by fraudulent sellers who don`t pay the taxes they owe. Tax evasion of cigarettes and tobacco products also harms the honest owner of the business. Unscrupulous sellers of untaxed cigarettes and tobacco products can lower the prices charged by the legitimate entrepreneur. And tax evasion is accompanied by an increase in theft, kidnapping, cross-border smuggling and other forms of organised crime. The Federal Trade Commission (FTC) is the primary agency that collects fraud reports. Report your fraud online to the FTC`s Complaints Assistant or by calling 1-877-382-4357 (9:00 a.m.

to 8:00 p.m. ET). The FTC accepts complaints about most scams, including this popular one: Report IRS Scammers to the Treasury Inspector General for Tax Administration (TIGTA). To report by phone, call TIGTA at 1-800-366-4484. Evading fuel taxes is bad for the environment. Illegally blended fuels can lead to increased soil and air pollution. These result from improper combustion and contamination by toxic chemicals or waste used as mixing agents. In addition, illegally blended fuels often lead to increased engine wear and tear and can lead to vehicle breakdowns. Each year, you keep your receipts, track your expenses, and when April arrives, pay your taxes.

But what if you know someone who isn`t as honest as you are? Someone who skimms their income or distorts information in order to be placed in a lower bracket. If you wish to report suspected tax fraud, please send us an online request via our « Report Possible Tax Refund Fraud » form or complete a Citizen Informant Report and send it to the address indicated on the form. If you used your credit card or bank account to pay a fraudster, report it to the card issuer or bank. Also report scams to major credit reporting agencies. Place a fraud warning on your credit report to prevent someone from opening credit accounts in your name. To report suspected tax fraud to the IRS, complete IRS Form 3949A and mail it to the address listed on the form. If you have any questions, you can call the IRS Helpline at (800) 829-1040. If you`ve helped plan or initiate the scam of the person you`re reporting, it may be wise to think twice. If you decide to report a crime in which you have been involved, be prepared for the consequences and certainly do not expect any reward. Please provide as much detail as possible about the suspicious company or person(s), including: www.irs.gov/individuals/how-do-you-report-suspected-tax-fraud-activity The FTC also collects reports of identity theft.

Report identity theft online at IdentityTheft.gov or by phone at 1-877-438-4338 (9:00 a.m. to 8:00 p.m. ET). If you receive an informant reward, it must be reported when you file your tax return. If you report your employer and don`t intend to change jobs, an IRS audit could make your work situation extremely uncomfortable. That`s not to say you shouldn`t report someone cheating, but it`s something you should consider. The IRS probably chooses to focus its efforts on these larger cases because they have a higher payout. It has also been suggested that people with higher incomes cheat more often and for higher amounts of money, mainly because they tend to earn more self-reported income. Report suspected tax fraud to the Internal Revenue Service (IRS).

You may be eligible to receive an Informant Award for reporting fraud. Report government tax evasion to your state`s Treasury Department or other tax authority. Tax evasion harms us all by reducing the amount of revenue available for essential state and local government services. Nearly 90% of taxes levied on cigarettes and tobacco products are used to fund key programs such as breast cancer research, health education, hospital and medical services, research, public resources and district projects for children`s health and development. Start by reporting the scam to your state`s consumer protection bureau. If you have lost money or other property in a scam, report it to your local police department as well. The IRS is unlikely to persecute anyone for no good reason. If time and resources are spent, there is a good chance that the efforts will pay off. In addition to determining who, what, where, when, and why the person evaded their taxes, the IRS needs specific information (the nature of the violation, the availability of books or records, etc.).

Having a clue without supporting details is simply not enough. As with many government processes, there is a lot of bureaucracy to break through. So, if you are looking for money quickly, you should look elsewhere. It can take several years to complete an investigation into tax evasion – and if there is no conviction, there is no arbitration award. Not only does the IRS have to establish the debt, but it also collects the amount owed before paying you. If the IRS determines that your tip has not « materially contributed to the determination and collection of taxes through the Service, » you will not receive a reward. We will keep your identity confidential if you file a tax fraud report. You will not receive a status or progress update due to the confidentiality of the IRC 6103 tax return. Retailers do not intentionally declare all retail sales subject to VAT. For more information about reporting fraudulent IRS emails or websites, see Report phishing and online fraud. Report online Social Security fraudsters to the SSA inspector general. Call 1-800-269-0271 (10:00 a.m.

to 4:00 p.m. ET) to make a report by phone. Although the IRS wants to preserve your privacy if the case against the person you are reporting goes to court, you may be asked to be a witness. If you are satisfied with this opportunity, write your name on the report. For other situations of tax fraud, you should also consider filing a report with one of the following organizations: You can report scams to the federal government. Your report may deter others from becoming victims of fraud. Government agencies use scam reports to track fraud patterns. You can even take legal action against a company or industry based on the reports. However, agencies usually don`t follow up after your report and can`t recover lost money. You may want to report the scam to organizations outside the government. Third parties can get your money back or remove fraudulent fees.