How to Report Tax Fraud
To report suspected tax fraud by a person or business, use IRS Form 3949-A, which can be filed anonymously. If you have specific, credible information about a large tax underpayment and want a possible reward, file Form 211 with the IRS Whistleblower Office; awards can reach 15% to 30% of the amount collected in qualifying cases. Report identity theft and preparer misconduct through the separate forms the IRS designates.
The IRS relies on tips to detect some tax fraud. Using the right form gets your report to the right office.
Which form to use
| Situation | How to report |
|---|---|
| Suspected tax fraud or evasion by an individual or business | Form 3949-A, Information Referral (IRS) |
| You want to claim a whistleblower award | Form 211, to the IRS Whistleblower Office |
| Someone filed a return using your Social Security number | Identity theft affidavit (Form 14039) and the IRS identity theft process; see identity theft |
| Tax preparer misconduct | Form 14157 (and 14157-A if a preparer filed or changed a return without consent) |
| Abusive tax promotions or schemes | Form 14242 |
| Scam calls or emails pretending to be the IRS | Report to TIGTA and [email protected]; see real vs. fake IRS letters |
Source: IRS reporting guidance.
What to include
Names, addresses, Social Security or employer numbers if known, the type of violation, the tax years, how you learned about it, and any evidence. Specific, documented information is far more useful than general suspicions.
Anonymity and confidentiality
Form 3949-A does not require your name. The IRS keeps the identity of informants confidential to the extent the law allows. Whistleblower claims require identifying yourself to the Whistleblower Office, which protects your identity.
Whistleblower awards
Under 26 U.S.C. 7623(b), if the IRS proceeds based on your information and the amount in dispute exceeds $2 million (and for individuals, the person's gross income exceeds $200,000 in at least one year), awards are generally 15% to 30% of the collected proceeds. Smaller cases may qualify for discretionary awards. The process can take years.
What to expect
The IRS generally will not tell you what action it took because of confidentiality rules. Do not attempt to gather evidence illegally, such as hacking or taking documents you are not authorized to have.
Employee whistleblowers
Reporting your employer can raise retaliation concerns; federal law protects tax whistleblowers in some situations. See whistleblower protections.
A tax lawyer can help prepare a strong whistleblower claim.
Sources
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This article is general legal information, not legal advice, and reading it does not create an attorney-client relationship. Laws differ by state and change over time; talk to a licensed attorney in your state about your situation.