A multi-national company serially underreporting its income in order to pay fewer taxes is significant, but a babysitter failing to declare the $40 of income is not. [2] X Research source The IRS is seeking solid and comprehensive information, not speculation or educated guesses. Tax fraud reporting is meant as a way to tackle serious fraud not to resolve personal disputes. The IRS offers rewards for information, but often the amount in dispute must exceed $2 million, or the individual have an income of over $200,000 to qualify for a significant reward. These guidelines reflect the IRS’s desire to catch major tax offenders. [3] X Trustworthy Source Internal Revenue Service U. S. government agency in charge of managing the Federal Tax Code Go to source
Failure to pay tax, or unreported income. False tax exemptions or deductions. False or altered documents. Kickbacks. Organised crime. Failure to withhold. [4] X Trustworthy Source Internal Revenue Service U. S. government agency in charge of managing the Federal Tax Code Go to source
If you are reporting a business, you should provide the name, address and Employer Identification Number as well as a description of the type of business. You are asked to provide as much information as you can, and leave blank any sections you cannot complete. [5] X Trustworthy Source Internal Revenue Service U. S. government agency in charge of managing the Federal Tax Code Go to source
The most common occurrence of tax fraud is overstating charitable donations, especially church donations. [7] X Research source The most significant form of tax fraud, dollar-wise, is under-reporting income. [8] X Research source Stowing away money in foreign tax havens is another punishable offense.
If you do choose to provide your identity, know that the IRS will keep your identity confidential. [9] X Trustworthy Source Internal Revenue Service U. S. government agency in charge of managing the Federal Tax Code Go to source An anonymous fraud reporter may not be able to collect a reward, if the IRS chooses to issue one.
You can download Form 14242 from the IRS website here: https://www. irs. gov/pub/irs-pdf/f14242. pdf Mail the completed form to: Internal Revenue Service Lead Development Center, Stop MS5040, 24000 Avila Road, Laguna Niguel, California 92677-3405. Include any promotional material you have about the scheme you are reporting with the form.
Common violations include people using the organisation’s income or assets for personal gain, the organisation participating in for-profit business activities, or involvement in a political campaign. Complete Form 13909, which is available here: https://www. irs. gov/pub/irs-pdf/f13909. pdf. Mail it in, along with any supporting information, to: IRS EO Classification, Mail Code 4910DAL, 1100 Commerce Street Dallas, TX 75242-1198. You can also fax it to 214-413-5415, or email it to eoclass@irs. gov. [14] X Trustworthy Source Internal Revenue Service U. S. government agency in charge of managing the Federal Tax Code Go to source
You can complete a Spanish version of the form here: https://www. irs. gov/pub/irs-pdf/f14039sp. pdf. Depending on the specific nature of your report, you will be asked either to pass the form to the office where you normally file your returns, submit it electronically, or mail it to a different IRS office. Full information about where to send your form is provided on page two of the document. You will need to include a photocopy of a document that proves your identity. The acceptable documents are listed on the form and include a passport, driving licence, and social security card. [16] X Trustworthy Source Internal Revenue Service U. S. government agency in charge of managing the Federal Tax Code Go to source
Form 14157 can be accessed here: https://www. irs. gov/pub/irs-pdf/f14157. pdf. Form 14157 – A can be accessed here: https://www. irs. gov/pub/irs-pdf/f14157a. pdf. Once you have completed the forms according to the instructions, mail them to: Internal Revenue Service AM – Preparer Complaints, Mail Stop 58, 5333 Getwell Road, Memphis, TN 38118. [18] X Trustworthy Source Internal Revenue Service U. S. government agency in charge of managing the Federal Tax Code Go to source You can use Form 14157 to report any suspected fraud by a return preparer.
The IRS may pay between 15%-30% of the amount collected in a reward to the whistleblower. There are separate rewards for reporting tax fraud of those on less income. These rewards are lower, but still require you to complete the same paperwork. [20] X Trustworthy Source Internal Revenue Service U. S. government agency in charge of managing the Federal Tax Code Go to source
If you reported the tax fraud to an IRS employee, provide that date and the employee’s name and title. Provide details about the tax fraud that you think will lead to the collection of unpaid taxes. List all supporting documents you have as well as a description and location of documents you don’t have. Explain your relationship to the taxpayer and describe how and when you became aware of the fraud. Substantiate the amount of unpaid taxes, and sign the Declaration under Penalty of Perjury at the bottom of the form. [22] X Trustworthy Source Internal Revenue Service U. S. government agency in charge of managing the Federal Tax Code Go to source
