How to Easily Report Tax Fraud in Arkansas

iEditorial Note: These blog posts represent the opinion of DoNotPay’s Writers, but each person’s situation and circumstances vary greatly. As a result, you should make sure to do your own independent research. Because everyone is unique, our self-help tools are never guaranteed to help with any specific situation. DoNotPay is not a law firm and is not licensed to practice law. DoNotPay provides a platform for legal information and self-help.

Answers to Where Do I Report Personal Income Tax Fraud in Arkansas

Undoubtedly, most Americans appreciate that everyone has a responsibility to pay their fair share of taxes, yet not everyone does so. Additionally, a significant percentage of federal income tax is paid on time, but the "tax gap" still exists. The gap is between the tax that goes to the Internal Revenue Service (IRS) and what all Americans owe in any particular year.

The tax gap matters since a slight percentage increase in voluntary compliance can bring in a significant amount of additional tax receipts. On the other hand, in an IRS news release Chuck Rettig, IRS Commissioner, said;

"Those who do not pay their fair share ultimately shift the tax burden to those people who properly meet their tax obligations."

Honest taxpayers play an essential role in helping the IRS narrow the tax gap. So, if you want to , you can do so through the IRS. Doing so allows the IRS to enforce tax laws, and in some instances, you may be eligible for a cash reward.

The conventional procedure for reporting personal income tax fraud involves;

  • Filing a fraud alert with the relevant authorities.
  • Filing an identity theft report with the local law enforcement agency.
  • Closing any affected accounts.
  • Placing a security freeze on one's credit report, among other things.

How to Know If Someone Is Cheating on Their Income Tax

Knowing that someone is cheating on their income taxes can be a challenge, and the IRS bears the responsibility of investigating possible tax fraud within Arkansas. As much as that is the case, the IRS encourages taxpayers to report particular activities and situations that warrant investigation, including;

  • Fake or altered tax returns
  • False tax deductions or exemptions
  • Abusive tax schemes
  • Kickbacks
  • Failure to withhold taxes from employee wages
  • Altered or false tax documents
  • Organized crime
  • Failing to pay taxes owed
  • Unreported income

Does The IRS Have A Personal Income Tax Fraud Hotline?

Yes, check out more information below:

Personal Income Tax Fraud HotlineThe IRS fraud hotline is 1-800-829-0433 and is toll-free. Understand that the hotline can help you access the necessary information to make a report after suspecting particular types of tax fraud in Arkansas. Below are other things you need to know about the IRS fraud hotline.
Guidance Offered by the HotlineContrary to what its name suggests, filing a report through the IRS fraud hotline is impossible. The hotline is an automated system that guides an individual toward the right form to use when reporting a possible personal income tax fraud within Arkansas.

The Hotline Has Pre-recorded Information

Once you dial the IRS fraud hotline, you will get a recording that shares details on;

1. Sending a letter if you do not want to complete a form.

2. Submitting a fraud report using a form or letter.

3. Ordering the form you need using the hotline or over the phone.

4. Downloading a reporting form from the IRS website.

Is Evidence Necessary When Reporting Personal Income Tax Fraud?

Any suspicions of someone being a tax cheat in Arkansas is something the IRS wants to know. The only thing is that having some evidence to back up your report is not an option in this case. The reason is that the IRS needs verifiable details like whether you saw an individual actively engaged in altering financial documents for tax gain or a case of witnessing someone fudging numbers in an accounting book.

Anonymity When Reporting Personal Income Tax Fraud

Probably, you do not want your name attached to any information you submit, or you are worried about the aftermath of reporting suspected income tax cheating in Arkansas, and that is fine. Note that a section for including your personal information for the IRS to contact you if necessary is available in some tax fraud forms.

However, filling out this section is not always necessary. That is why checking the instructions is advisable. For instance, the information referral form for tax fraud (Form 3949-A) indicates that any personal details one provides will not be shared with the individual or business they are reporting.

It is also worth mentioning that there may be exceptions in particular situations. For example, when reporting a tax professional for suspicious activity around your tax refund, the IRS may need your personal information to process your report. The IRS may also need to share specific details with your bank in such circumstances.

Is There A Reward for Reporting Personal Income Tax Fraud?

Getting a financial reward is possible if your tip results in the IRS collecting back penalties, taxes, interest, or other amounts. That implies that you may be eligible for a particular percentage of the amount collected depending on information about how much is owed and who owes it.

The only thing is that giving up your anonymity by providing your details to the IRS office in Arkansas will be necessary if you want to claim your whistleblower reward. That is the case since the IRS needs to know who you are before sending you the cash.

Insight into How DoNotPay Can Help You Report Personal Income Tax Fraud

DoNotPay's new Tax Fraud product allows you to report any company or business in Arkansas for suspicious tax activity and earn cash rewards. Once you answer a few questions, , which can allow you to earn up to 30% of what the IRS collects. Here are details on how to use the product.

1. Open the DoNotPay Report Tax Fraud product.

2. Enter the business you wish to report for tax fraud.

3. Avail details of the suspicious activity and as much evidence as you can.

4. Confirm your contact information.

5. DoNotPay automatically generates the official report and sends it on your behalf. Once the case is investigated, the IRS will contact you about cash rewards.

Also, note that DoNotPay offers all users the option to remain anonymous, and the product works in the UK, where the filing of such a report is to the HMRC rather than the IRS. DoNotPay helps people report fraud all across the country from New York to California.

Use DoNotPay to Report Personal Income Tax Fraud in Arkansas

The decision on the next course of action after suspecting a business or individual within Arkansas of neglecting their duty to pay taxes depends on you. Remember that the IRS has ways to help you if you decide to report such suspicions. You can learn more by with DoNotPay today.

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