How to Report Tax Fraud Using DoNotPay

Report Tax Fraud How to Report Tax Fraud Using DoNotPay

Suspect Tax Fraud: Here's How to Report Tax Fraud

Tax fraud negatively impacts the average citizen. It is against the law and takes money away from the government, police, and firefighters. Roadways, libraries, and parks may also suffer because someone, usually a business, evades paying their IRS obligations.

If you suspect that someone is being dishonest with the government, you must take a little time to file a tax fraud report. This article offers detailed information on how to report tax fraud.

What Exactly is Tax Fraud?

It depends on the type of fraud that you are referring to. In general, there are two types of tax fraud, but it depends on the circumstances.

Tax FraudTax fraud is when a business or a person intentionally does things to falsify their information on a tax return. It limits their liability and ensures that they do not pay taxes on all their income.
Tax EvasionThe company or individual's actions may also fall under tax evasion. This is when they deliberately avoid paying their true tax liability.

Both types of tax avoidance can be illegal and punishable. Often, it is a misdemeanor unless there is a lot of money or assets at stake. However, in some circumstances, tax avoidance can be done in ways that make it legal. It simply depends on the circumstances. In either event, it is something worth reporting if you discover someone who is evading their taxes.

Other types of fraud include employers not paying employees properly. For this, you can also easily discover how to report a fraudulent company to the IRS.

Why You Should Report Tax Fraud

The first thing you must understand before filing IRS fraud report forms is that there are many types of fraud. Some may be worth reporting, while others could boil down to simple human error. The IRS says that some of the most common ways that people and businesses commit tax fraud are:

  1. Not Reporting All Income
  2. Claiming to Give More to Charities
  3. Claiming Bigger Deductions Than Earned
  4. Not Filing Taxes at All
  5. Failure to Ensure Accurate Information
  6. Claiming Unearned Earned Income Tax Credits
  7. Hiding Assets or Income
  8. Claiming Dependents That You Are Not Legally Able to Claim

This does not cover all possible fraudulent activity that people or businesses may be involved in. The main thing to remember is that not taking time to call the "report tax fraud hotline" means that the offender will continue to do illegal activities.

What IRS Forms to Use to Report Fraud

If you feel that someone is guilty of tax fraud, and you want to report it, there are things you can do. If you are wondering who to contact to report tax fraud, the IRS is the most obvious. They make it relatively simple because you can report fraud to IRS form 3949-A.

By filling out the form, you will have an easy way to report who the person or business may be committing fraud. You will also be able to pinpoint the type of fraudulent activities you feel they are involved in. The usual information needed are the following:

  • The Person's Name
  • Address
  • Occupation
  • Business Name
  • Tax ID Numbers
  • Business Address
  • Websites
  • The Alleged Violation
  • Comments Regarding Why or How You Obtained Your Information
  • Your Information

If someone is doing wrong, you have an obligation to tell the IRS. It doesn't matter whether they are your boss or your landlord. However, if you prefer not to use the standard form, there are other ways to report it.

If You Report Tax Fraud, Is It Anonymous?

Some people feel very uncomfortable when they learn how to report fraud to IRS because the form does ask that you fill out personal information. This should not stop you from filing a report. Your personal information will not be shared with anyone else.

The information you provide on the form to report IRS tax evasion is there in case additional information is needed. It may also help you if there is a reward for identifying the company committing fraud.

If you prefer, you can also write a letter to the IRS rather than fill out the form. If you are trying to learn how to turn in a business for tax evasion through a letter, you will still need to give the government as much information as possible.  Ideally, you will give all the information that should be on the form, just in a letter.

In some situations, you can also locate a "report tax fraud phone number." However, the IRS does say that it will not take tax law violation referrals over the phone.

DoNotPay Can Help You Report Income Tax Fraud in the United States

Most people do not like to contact the IRS. It can be very intimidating, even if you feel confident that you are not in the wrong. Chances are good, you are reporting an employer or someone else that you know personally. It can also be hard to know what qualifies as tax evasion or fraud.

DoNotPay can take some pressure off you, ensuring your claim is fast, easy, and successful. We can help you feel more confident about the steps you are taking. All you have to do is ask us, "How do you report tax fraud?" and we will do the rest with just five easy steps.

  1. Open DoNotPay.
  2. Go to the Report Tax Fraud area and enter the business name.
  3. Fill in the details. Provide as much information and evidence as you can.
  4. Confirm your identity
  5. The official report will be sent to the IRS. They may contact you if there are cash rewards available.

By taking advantage of our easy process, learning how to report tax fraud is very easy.

If you want to report tax fraud but don't know where to start, DoNotPay has you covered. Create your own cancellation letter in 5 easy steps:

  1. Open the DoNotPay Report Tax Fraud product.
  2. Enter the business you would like to report for tax fraud.
  3. Provide the details of suspicious activity and as much evidence as you can provide.
  4. Confirm your contact information.
  5. DoNotPay will automatically generate the official report and send it on your behalf. The IRS will contact you regarding cash rewards once the case is investigated.

Other DoNotPay Services

Beyond helping you to report someone for tax credit fraud DoNotPay also offers a variety of other services that will simplify your life. Some of our main services are:

As the world's first online lawyer, we are happy to help you get through the questionable parts of your life. At DoNotPay, we help you report phone tax fraud and provide the answers to questions you may have about legal issues. When you are ready to take control of your life, do not hesitate to let us help.

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