Steps to Report Tax Fraud in Maryland

Report Tax Fraud Steps to Report Tax Fraud in Maryland

Where Do I File A Tax Fraud Report For Maryland: Your Guide to Reporting Tax Crimes

Tax fraud can happen in many ways and stem from many culprits. Suspicious tax preparation businesses, businesses that fail to report all their revenue, and identity thieves can all steal tax dollars from the state. According to Maryland's official tax site, the Comptroller's office has prevented $190.2 million of unearned, fraudulent refunds from going to bad actors. It’s important to note that they rely on individual tips to do so.

Learn how to report tax fraud and where to report it in Maryland.

What Is Tax Fraud?

Tax fraud is the willful or intentional attempt to evade federal, state, or local taxes, either in part or as a whole. Not only can tax fraud be monetary fraud, but it can also be identity theft or other criminal intent. The Internal Revenue Service monitors and establishes the tax code, and there are separate tax codes for federal taxes and Maryland state taxes.

Tax evasion and tax fraud are considered felonies under federal law. Knowing how to file a tax fraud report for Maryland can help you protect your interests if you suspect an individual or a business is committing tax fraud.

Common Types of Tax Fraud in Maryland

US Code Chapter 75 – Crimes, Other Offenses, and Forfeitures define the different types of fraudulent actions that are considered tax fraud. They include:

Failure to PayIndividuals and businesses are responsible for paying taxes for all taxable income and revenue, respectively. Tax fraud can be in the form of underpaying the amount of taxes owed or not paying taxes in the first place. This is a willful failure to pay, as opposed to an accidental failure or an inability to pay; the IRS offers payment plan options for these circumstances.
Failure to ReportPeople and businesses can also commit tax fraud by underreporting the taxable income or revenue they received. While they may pay the total amount due according to the forms, the forms themselves contain false information. They may also fail to turn in forms altogether.
False Statements“False statements” is a broad category of tax fraud. Bad actors can:

  • Report with the intent to receive greater refunds than they are due
  • Commit identity fraud
  • Fail to supply accurate information

For example, someone may claim a child on their taxes to gain additional credits or a greater refund. Businesses can also commit tax fraud that harms their employees by failing to make or provide statements to employees or interfering with the normal administration of tax law.

Tax Preparation Businesses & FraudTax preparation businesses may knowingly miscalculate taxes to win more business, file fraudulent tax documents under individuals' names without their consent, or file multiple tax returns with the intent of receiving refunds to which they are not entitled.

How to Report Tax Fraud With DoNotPay

At DoNotPay, we can file a report regarding suspected tax fraud on your behalf. Follow these easy steps to use DoNotPay to report tax fraud to the IRS:

  1. Log in to our DoNotPay platform and select the "Report Tax Fraud" option.
  2. Detail the business or individual you want to report and details regarding the incident. Any specifics you include can help with the investigation.
  3. Add your name and contact details.
  4. Verify that the provided information is correct.
  5. Send the report. DoNotPay can send the report to the IRS directly on your behalf, and the IRS will contact you regarding any questions or a reward for a successful investigation.

With our simple process, you can report tax fraud and know that the matter is properly brought to the attention of the IRS.

Other Ways to File a Tax Fraud Report for Maryland

You can report tax fraud for Maryland through other avenues. Those include:

  1. Sending a letter: One of the most popular alternatives is to send a letter directly to the IRS. Use this sample letter to report tax fraud in Maryland. This letter needs to include details such as:
  • The approximate time or date of the tax fraud
  • What type of tax fraud do you believe was committed, as well as any details regarding the amount of unreported taxable income or fraudulently acquired refunds
  • The identity of the fraudulent party, who may be your employer or a tax preparation business
  • Your own identity and contact information
  1. Filing out a form: You can fill out the Information Referral Form 3949-A to report individuals or businesses you suspect are committing fraud. The IRS will keep your identity confidential (per 26 US Code § 6103) and investigate the claim.
  2. Reporting the incident to the Maryland Department of Revenue or filing a report with your area's police department (in the event of identity theft).

What Else Can DoNotPay Do to Help With Your Taxes?

At DoNotPay, we help individuals manage tax-related tasks across multiple different jurisdictions and tax areas. Looking for answers to a specific problem? Find out how we can help with:

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