Reporting Tax Fraud to the State of Iowa
Tax evasion and tax fraud are criminal activities, and both state and federal laws are in place to address such cases. Anyone who willfully attempts to evade paying their taxes faces stiff penalties and even prison sentences imposed by these laws. Quite often, the terms "tax evasion" and "tax fraud" are used interchangeably.
However, when someone intentionally makes false statements on their tax return, that is referred to as tax fraud. On the other hand, any attempt to avoid paying a tax is called tax evasion. Some of the common examples of tax evasion include:
- Intentional preparation or filing of a false tax return.
- Intentional failure to file a tax return.
- Willful making of fraudulent or false claims regarding taxes.
- Willful failure to pay a tax.
- Intentional failure to report all income received.
So, how do you report tax fraud to the state of Iowa? Here is some information to share more insight into that.
Tax Evasion and Tax Fraud Laws Informing the Process of Reporting Tax Fraud to the State of Iowa
•Willful filing of a false tax return or deposit to evade a tax.
•Willful failure to file a tax return or deposit form to evade a tax.
|Code Section||The Iowa code section addressing tax evasion and tax fraud is Iowa Code section 421.27: Willful Failure to File or Deposit. Basically, the code outlines what one can expect when they fail to file taxes.|
|Penalties||If one is found guilty of tax fraud, a penalty of 75% is added to the amount they owe. That means that once you are caught, failing to pay taxes becomes more expensive, which is not the case when you choose to honor the obligation willingly.|
Federal Tax Evasion that Warrants Reporting Tax Fraud to the State of Iowa
According to 26 U.S. Code section 7201, any willful attempt to defeat or evade a federal tax is considered a felony under federal law. The code also states that the punishment for federal tax evasion is a fine of up to $100,000 ($500,000 if it's a corporation). It can also result in imprisonment for up to five years.
How to Report Tax Fraud Involving Identity Theft to The State of Iowa
Sometimes, your identity as a taxpayer can be used to file a fraudulent income tax return. Just like the case of online attacks, you become a victim of identity theft when that happens. According to the Iowa Department of Revenue, victims of identity theft tax fraud should consider following the steps below.
1. Get in touch with the IRS Identity Protection Specialized Unit at (800) 908-4490.
2. Call the Iowa Department of Revenue.
3. Place a fraud alert on your credit reports.
4. Call (877) ID-THEFT to file a complaint with the Federal Trade Commission.
5. Visit your local police department to file a report about identity theft tax fraud.
6. Call (800) 373-5044 to report the matter to the Iowa Attorney General's Office.
Details to Include When Reporting Tax Fraud to The State of Iowa
First, understand that providing accurate information when reporting tax fraud to the state of Iowa is critical. The reason is that doing so will help the relevant authorities identify and review the matter without unnecessary difficulties. Here are some of the details you should consider including in such a report.
1. Your contact information (optional).
2. Individual/business name and address.
3. Asset details.
4. Identification information like tax ID, address, or date of birth.
5. Details on how you became aware of the alleged violation and the length of time this has continued occurring.
6. Information on the alleged tax violation.
7. The affected tax types. That may include withholding, income, and sales and use tax.
Why Should You Keep it Legal When Reporting Tax Fraud to the State of Iowa?
Besides the courage it takes, it is not a good idea to break into your CEO's office to get evidence to support your tax fraud claims. Understand that the IRS does not want you to break the law in your efforts to find a tax cheat. In that case, you are better off if you are the bookkeeper for an entity cheating on its taxes.
That implies that probably, working with documents that prove the organization is cheating is part of your job, which means that you can submit the paperwork to the IRS. Of course, the IRS wants to protect your privacy. However, you may be asked to be a witness if the person you report ends up going to trial. So, if you are comfortable with such a possibility, you should put your name on the report.
How The DoNotPay Product Can Help You Report Tax Fraud to The State of Iowa
When large corporations fail to pay their fair share of taxes, the average American ultimately bears the burden to pay their dues. That is not only illegal but unfair. DoNotPay's new Tax Fraud product allows you to report suspicious tax activity without difficulties, and that earns you cash rewards too. You only need to answer a few questions about the organization and the suspected activity.
After that, files an official IRS report on your behalf, and you can earn up to 30% of the cash that the IRS collects. Below are instructions for using the DoNotPay product.
- Open the DoNotPay Report Tax Fraud product.
- Enter the business you would like to report for tax fraud.
- Provide the details of suspicious activity and as much evidence as you can provide.
- Confirm your contact information.
- 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.
The product also works in the U.K., where the report is filed to the HMRC rather than the IRS. Additionally, although remaining anonymous is an option, anonymous reporters do not qualify for monetary rewards.
DoNotPay Makes Reporting Tax Fraud to The State of Iowa Easy
Today, tax fraud is a serious problem in Iowa, as well as across the country from the East Coast to the West Coast. For that reason, the IRS encourages individuals to submit tips by offering generous rewards for informants who are willing to identify themselves and allowing anonymous submissions.
Reporting a tax cheat to the state of Iowa can be rewarding for you and the government if you are willing to bear the potential consequences of squealing and can substantiate your claims. with DoNotPay today to learn more.