Write a Sample Letter to Report Tax Fraud

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DoNotPay’s Sample Letter to Report Tax Fraud

No one loves paying taxes, but the vast majority of people and businesses do their part every year. That's because we know our tax dollars pay for everything that keeps our society running smoothly. There's also the fact that committing tax fraud is illegal, with severe consequences for anyone that gets caught.

Despite these two very compelling reasons for paying taxes, businesses and individuals use all kinds of dishonest tricks to avoid paying their fair share. If you know of someone that's trying to cheat the system, do the right thing and speak up as soon as possible. We're here to help you with a sample letter to report tax fraud that you can send to the IRS. Even better, this article explains how DoNotPay's tools make the reporting process as easy and simple as possible.

What Does the IRS Consider to Be Tax Fraud?

Tax fraud and tax evasion can take many forms, but it all boils down to manipulating or withholding information about your taxable income. It's definitely not the kind of thing someone can do by accident, but rather a very deliberate attempt to deceive the IRS.

General Examples of Tax Fraud

False ExemptionsClaimed persons as dependents are not entitled to claim
Inflate or Fake Tax DeductionsForging tax claims by inflating deductions or expenses.
Not Reporting or Under-Reporting IncomeReporting income or revenue that is lower than what was actually received or not reporting income at all.
Fake or Altered Tax DocumentsFalsifying or tampering tax records or other documents

Examples of Tax Fraud Committed by Businesses

  • Paying employees "under the table" and not reporting cash payments
  • Not withholding federal income taxes from paychecks
  • Withholding payroll taxes but then not reporting or paying these funds to the IRS
  • Organized crime or money laundering

Why Should You Report Tax Fraud?

Despite the very best efforts of the IRS, tax fraud and tax evasion add up to hundreds of billions of dollars every year. What's worse is the burden of these lost resources will then get passed on to the honest taxpayers. While tax cheats are refusing to do their part, they're still enjoying all the public goods and services that everyone else pays for.

Reporting tax fraud is simply the right thing to do, but there's also the incentive of a potential financial reward. The IRS is very interested in any useful information that can help them enforce tax laws and collect more revenue. You may be eligible to get 15 to 30 percent of the amount that gets recovered from your tax fraud report, depending on how much was owed and by whom.

How to Write a Sample Letter to Report Tax Fraud

If you have reason to suspect an individual or business is trying to cheat, the IRS only accepts reports of tax fraud in a written format. You can either fill out Form 3949-A or make your report in the form of a letter.

While the IRS does ask for very specific details to be included in the letter, the idea is for you to send as much information as you're able to provide. Even if you don't know everything, your report can still potentially make a difference and help the IRS recover tax revenue from someone that's trying to cheat.

Your letter to report tax fraud needs to include the following:

  1. The name and address of the individual or business being reported
  2. Their taxpayer identification number, which is either the employer identification number for a business or the social security number of an individual
  3. A description of the suspected violation(s)
  4. How you became aware of the violation(s)
  5. If the fraud includes unreported income, your estimate of the dollar amount
  6. The years involved in the tax fraud, as far as you know
  7. Any supporting documents or evidence that relate to the tax fraud
  8. Your name, address, and a phone number to reach you

The IRS does allow whistleblowers to make their reports anonymously, so you can leave out your contact information if you want to. In that case, you would also be forfeiting any potential financial reward from the money that gets recovered as a result of your report. The address you send your letter to is Internal Revenue Service, PO Box 3801, Ogden UT, 84409.

Let DoNotPay Easily Generate Your Sample Letter to Report Tax Fraud

Dealing with the IRS is intimidating, especially with sensitive issues like reporting tax fraud. But you don't have to navigate this tricky situation on your own. If you want to report tax fraud but don't know where to start, DoNotPay has you covered. Generate your own letter to report tax fraud 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.

Remember that you also have the option to stay anonymous if that's what you prefer. Either way, DoNotPay makes the process of reporting tax fraud truly seamless.

Why Use DoNotPay to Write a Sample Letter to Report Tax Fraud

Instead of scouring the internet for more tips on reporting tax fraud correctly, let DoNotPay generate the perfect letter for you. All you have to do is answer a few questions, be honest, share what you know about the situation and let our AI Consumer Champion do the rest.

Using DoNotPay is fast, easy, and legally sound. The world's first AI Consumer Champion offers a comprehensive range of tools to make life easier, whether you're dealing with the IRS, requesting sick leave from your job, canceling a free trial before it automatically renews, or notarizing a document.

What Else Can DoNotPay Do?

The possibilities of what you can do with this tool are literally endless. For example:

No matter the situation, DoNotPay is the smartest way to do more with less hassle. Download the app today to see everything our AI Consumer Champion can do for you.

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