July 13, 2015

You suspect that someone is committing tax fraud, but you’re not sure what to do.

How do you report it? Should you call the IRS?

The Internal Revenue Service has specific procedures in place that involve filing a form to report the type of fraud you believe may be taking place.

Print Form 3949-A from the IRS website or request the form by calling the Tax Fraud Hotline recording at (800) 829-0433. (Alleged tax law violations referrals are not accepted by phone.)cf0513b 2

Mail the form to Internal Revenue Service, Fresno, CA, 93888 to report the following:

  • False exemptions or deductions
  • Kickbacks
  • False/altered documents
  • Failure to pay taxes
  • Unreported income
  • Organized crime
  • Failure to withhold

You may also send a letter to the address instead of the form. Send as much information as possible, including the name and address of the person you are reporting, the Social Security number and/or employer identification number if you have it, the description of the offense, years involved and estimated dollar amount of unreported income.

You are not required to identify yourself, but the IRS says it is helpful to do so, and your identity will be kept confidential.

Other types of forms are required for other types of suspected tax fraud. Don’t use Form 3949-A to report the following:

  • Stolen identity – Form 14039. Mail or fax it to office listed on the form. Include a document to verify your identity. For more information, go to the Taxpayer Guide to Identity Theft at www.irs.gov/uac/Taxpayer-Guide-to-Identity-Theft.
  • Tax preparer fraud – Form 14157 and possibly Form 14157-A. You can complete the form online, then print it and mail it to the address on the form.
  • Unauthorized alteration of your tax form by tax preparer – Form 14157 and Form 14157-A. Send both forms to the address on the form.
  • Abusive tax promotion or promoter – Form 14242. Mail or fax it to the office listed on the form.
  • Wrongdoing by an exempt organization or employee plan – Form 13909. Mail it to the address on the form.
  • Fraudulent IRS emails or websites – Contact the IRS immediately on its phishing web page www.irs.gov/uac/Report-Phishing.
  • Have information and want a reward – Form 211. Mail it to address on the form. There are two types of informant rewards: The IRS will pay 15-30 percent of taxes, penalties and interest collected over $2 million, and smaller rewards may be paid for lesser amounts collected. See Whistleblower Rules at IRC Section 7623(b).

For full details, visit www.irs.gov/Individuals/How-Do-You-Report-Suspected-Tax-Fraud-Activity%3F.

This article was originally posted on July 13, 2015 and the information may no longer be current. For questions, please contact GRF CPAs & Advisors at marketing@grfcpa.com.