Learn Where to Report Someone Who Owes Money to the Franchise Tax Board Easily

Report Tax Fraud Learn Where to Report Someone Who Owes Money to the Franchise Tax Board Easily

How to Report Tax Fraud to the Franchise Tax Board

Thanks to Hollywood, there is the common misconception that tax fraud only happens among those who have large sums of money. However, nothing could be further from the truth. Tax fraud occurs among all income classes and businesses of all sizes. It occurs more often than people realize, and the chances of you knowing someone who has committed tax fraud is high. The good news is there is something you can do about it. Report tax fraud to the tax board and protect the interests of everyone.

The problem is that tax fraud affects everyone. When individuals and companies do not pay their share of taxes, the burden falls on the shoulders of average Americans. This is your guide on how to report someone who owes money to the franchise tax board and how DoNotPay can make this process faster and easier.

What Is Tax Fraud? 

Tax fraud is a broad term that encompasses intentionally avoiding paying taxes by failing to report accurate income. There are several different ways this can happen. Tax fraud can be committed by an individual, small business, corporations, non-profit organizations, and more. The goal of a taxpayer committing tax fraud is to avoid paying what they owe in taxes. If found out, the consequences are very serious and can include:

  1. Being charged with a felony
  2. Substantial fines
  3. Prison time

Reporting suspected tax fraud is a civic duty that benefits all citizens at both the federal and state level. At the state level in California, suspected fraud activity should be reported to the Franchise Tax Board.

What Is the Franchise Tax Board? 

Also known as the FTB, the Franchise Tax Board is the organization that is responsible for enforcing income tax collection and assessment. It is the state tax agency that operates under the California Government Operations Agency. Duties of the FTB include:

  1. Receiving state personal income tax information
  2. Receiving corporate income tax information
  3. Determining the amount of taxes due for individuals and businesses
  4. Collecting taxes owed to the state of California

The FTB is comprised of the following key players:

  1. California State Controller
  2. Director of the California Department of Finance
  3. Chair of the California Board of Equalization
  4. Chief Administrative Official (executive officer)

It is essential to know that the Franchise Tax Board tends to be aggressive in terms of tax collection, and the penalties for failing to pay timely are swift and severe when compared to the IRS.

When Can You Report Tax Fraud?

You can easily report tax fraud anytime you suspect an individual or business is failing to adhere to California's tax laws. Examples include but are not limited to:

  • Lying about residing in California
  • Falsifying refund claims
  • Inaccurately preparing taxes for purposes of evasion
  • Opening and closing businesses in order to catch a tax break
  • Lying on business records about income and expenses

The bottom line is you can easily report tax fraud at the click of a button when you feel something is amiss, whether you know the individual or are a customer or employee of a corporation. The relationship to the person or entity doesn't affect your ability to report potential tax fraud.

How Can You Report Tax Fraud? 

According to the Franchise Tax Board, the following are the items you need when making a report.

  1. Individual or businesses name and address
  2. Income and asset information
  3. Marital status (if it's an individual)
  4. Spouse or partner's name
  5. The tax violation
  6. How you know of the tax violation
  7. Supporting documents and material
  8. Contact information (if you choose not to report anonymously)

In many cases, those who are aware of tax fraud choose not to report it because they do not want to get involved. However, it is important to know that you can report anonymously and do not have to provide your contact information if you choose not to. 

If you choose to provide your contact information due to privacy and disclosure laws, you can rest assured that your identity will not be released. The FTB is also prohibited from sharing updates about the case and rewards can never be offered.

Where to Report Tax Fraud to the FTB

You can report tax fraud to the Franchise Tax Board via these different methods:

OnlineEasily report tax fraud online using this link
PhoneReport by phone using the phone number (800) 540-3453
FaxFraud can also be reported via fax at (916) 843-2060
MailYou can also mail your concerns to the Franchise Tax Board at P.O. Box 1565, Rancho Cordova, CA 95741-1565

Reporting Tax Fraud with DoNotPay

If you want to report tax fraud but don't know where to start, DoNotPay has you covered. Report 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. Provide the details of suspicious activity and as much evidence as you can provide.

     

  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.

     

Are You a Victim of Tax Fraud? 

The Franchise Tax Board takes tax fraud very seriously and works hard to crack down on this damaging crime. If you have a reasonable belief that tax fraud is being committed, the responsible course of action is to report it. If you find that you are more than just an onlooker of tax fraud but rather a victim, you may be interested in taking further action. The world's first robot lawyer allows you to fight for what's yours and sue anyone with a click of a button. DoNotPay is an easy-to-use app that allows you to take control of your life and protect your finances. Sign up today for a FREE trial. At the end of your free trial, easily cancel or keep going. It's up to you.

What Else Can DoNotPay Help With? 

Here are a few examples of other legal issues that DoNotPay can help sort out for you:

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