Learn Where to Report State Sales Tax Fraud Fast

Report Tax Fraud Learn Where to Report State Sales Tax Fraud Fast

Where to Report State Sales Tax Fraud Quickly and Easily

State sales tax fraud is committed when a seller intentionally fails to report or collect sales tax on the products or services they sell. State sales tax fraud not only hurts the business or merchant that commits the tax fraud but also consumers as well. Many times, it costs the state citizens to receive tax increases and a loss of resources as a result.

It is every citizen's duty to inform the appropriate officials about any deliberate state sales tax fraud to ensure a fair and honest process. However, what can we, as concerned individuals, do when we have knowledge of such practices? Here is key information to help you properly and effectively report sales tax fraud in your state.

What Exactly Is State Sales Tax Fraud?

State sales tax is a certain percentage added to the total price of a product or service. However, when the tax purposefully fails to get collected or reported, then it becomes a case of state sales tax fraud. If a merchant deliberately fails to add their state's tax percentage to the cost of a product or service, then they are committing sales tax fraud. Sales tax is charged in 45 states and Washington D.C. The five states which do not charge sales tax are Alaska, Delaware, Montana, New Hampshire, and Oregon.

Why Should You Report State Sales Tax Fraud?

Reporting sales tax fraud can be done by any citizen who has knowledge of a business or seller committing fraud. The process may seem intimidating. However, the following are two reasons why it can benefit both you and others:

It is your civic dutyIf a merchant fails to add the state's tax percentage to the cost of a product or service, then the merchant is willfully committing state sales tax fraud. Sales tax fraud robs the state, as well as you and other consumers in the long run. That is why it is important to do your part in stopping sales tax fraud when the information is made known to you. By reporting sales tax fraud, you are helping the community and state thrive.
Gain compensation on your effortsAnother good reason to report state sales tax fraud is that you can receive a monetary reward. When you report tax fraud through DoNotPay, you have the opportunity to get thirty percent of the amount the IRS collects. If you want to decline the reward, you can choose to remain anonymous instead

How to Report State Sales Tax Fraud On Your Own

When it comes to reporting sales tax fraud, there are several options you can take to report it yourself. The following are four ways in which you can report sales tax fraud in your state:

  1. Your state's tax fraud reporting hotline (which can be found on your state's official website)
  2. An online form on your state's website
  3. Mail-in forms (which you can mail directly to your tax fraud investigators)
  4. Submit a tax fraud Form 3949-A directly to the IRS online at IRS.gov

When reporting sales tax fraud, you may need the following information:

  • The name of the business or individual who committed the fraud
  • The employer's ID number or social security number of the individual
  • A brief description of how you became aware of the situation
  • Years of suspected fraud
  • Estimated amount of total sales tax withheld
  • Your contact information (unless you wish to remain anonymous)

Having all the information may be difficult to obtain. Getting information, such as an individual's social security number, is difficult or even inaccessible to acquire. It isn't necessary to have all the information, but the more you have when reporting sales tax fraud, the quicker the proper procedure will go. However, this, in turn, means more work in collecting the necessary evidence and information to fill in the forms online or through the mail.

Report State Sales Tax Fraud With DoNotPay

DoNotPay is the perfect solution for reporting sales tax fraud in your state. We've created a simple tool to help you easily report state sales tax fraud. 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.

Why You Should Use DoNotPay to Solve the Problem

DoNotPay is a tool that is designed to provide legal services through artificial intelligence. Our goal is to provide you with the most relevant and up-to-date information that can help you make legal decisions in a simple way. DoNotPay offers an easy, fast, and successful way to report state sales tax fraud. When you use DoNotPay, you can rest assured that we'll help make the best case for you.

What Else Can DoNotPay Offer?

DoNotPay provides you with a way to help you report tax fraud as a concerned citizen. There are also several ways in which DoNotPay can help. To learn more, check out some of the other areas that DoNotPay can assist you with:

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