How to File Tax Fraud Reports: Ultimate Guide to Reporting Tax Fraud in California
When other people or businesses commit tax fraud, it's more than unfair. It can actively impact your life. When bad actors commit tax fraud and take fraudulent returns or underpay taxes, California loses out on tax revenue used to pay for infrastructure, education, public programs, and more. Others can also commit tax fraud against you by claiming your child on their tax return, filing a duplicate tax return with your name to get your tax return and more.
If you uncover signs of tax fraud in California, DoNotPay can help. Learn more about common forms of tax fraud and how to report tax fraud in California.
What Does Tax Fraud in California Look Like?
Tax fraud encompasses a wide range of intentionally misleading or inaccurate representations at any stage of reporting, paying, and preparing taxes. Individuals, employers, and tax preparation organizations can all be found responsible for committing tax fraud in California.
Some of the most common examples in the state include:
|Under-Reporting Income||Filling out tax forms with incorrect revenue and taxable income amounts is considered tax fraud. Individuals or organizations with multiple revenue streams can under-report specific amounts or funnel some income into a taxable income type that falls under a lower taxable threshold. Even if the reporter pays the amount they report, underreporting is still tax fraud.|
|Not Filing Tax Returns||Some individuals and organizations commit tax fraud by refusing to fill out tax forms and file a tax return in the first place. This is a common form of tax evasion. Remember: the vast majority of individuals and businesses must file tax forms, even if they owe a tax bill of $0 or anticipate receiving money back.|
|Making False Statements||This category includes a wide array of knowingly providing inaccurate statements or facts. For example, someone may claim tax credits or deductions they aren't owed, misrepresent their business or hobbies to lower their tax bill, or even commit identity fraud. Also, fraudulent tax preparation companies can file duplicate tax returns to help themselves to your tax refund.|
How DoNotPay Can Help You Report Tax Fraud
Reporting tax fraud in California can help protect you if you're tangentially related to the incident. It can also identify bad actors that may be committing additional counts of fraud. For example, if your landlord or employer is committing tax fraud, it can be difficult to trust them in payroll, payment, and day-to-day matters.
If you observe tax fraud and want to make sure you report it correctly to the Internal Revenue Service for investigation, DoNotPay is here to help you manage the process. Our simple, intuitive process is just five steps long:
- Access our Report Tax Fraud tool: Log in at DoNotPay and find the "Report Tax Fraud" service. Click or tap on the option to get started.
- Describe the incident: We'll help you describe the details you know about the incident and provide evidence. Our portal will prompt you with questions about the date and time of the incident, the person or company who may have committed the fraud, and other information about the tax fraud itself.
- Provide personal details: The IRS will need your contact information to ask for more information or give you any applicable cash reward for the tip. This will include your name, phone number, and address.
- Ensure the information is correct: You can review the information to check for accuracy or type in additional details.
- Finalize the tip: Once you confirm the details, DoNotPay will send the report with all the necessary documentation to the IRS. Congratulations — you're done!
Reporting tax fraud in California is an important civic act. It can also protect you in the event the IRS is investigating related fraudulent incidents or even result in you gaining a cash reward.
Do you want to report tax evasion in California, but you're concerned about your safety or anonymity? DoNotPay can also help you anonymously report tax fraud.
How to Report Tax Fraud Without DoNotPay in 4 Easy Steps?
There are several different avenues to file a tax fraud report with California. While we provide an intuitively guided process, you can independently communicate with the IRS to report your suspicions. Some other options for reporting tax fraud include:
- Writing a letter to the IRS with details about the potential fraud. (Here's a sample letter to get you started!)
- Filling out the Information Referral Form 3949-A and submitting it by fax or post.
- Filing a report with your local police station, especially if the tax fraud involved identity theft
- Contacting California's comptroller and following their instructions for reporting a tax-related crime.
Your avenues for reporting tax fraud vary in every state, so be sure to research the details before getting started. DoNotPay can help you report tax evasion in every state, from New York to Iowa!
Other Tax Problems You Need to Report? DoNotPay Can Help!
Do you have a specific tax fraud incident you want to report, but you don't know how to get started? At DoNotPay, we have the answers to help you decide what to do next. We've helped taxpayers like you across the country to:
- Report their boss for IRS fraud
- Report their landlord for tax evasion
- Report tax fraud for a reward
- Know more about how to report tax fraud in general