If you have documents that show fraud, keep a copy of them. For example, someone might not report income from a bank account. If you have a copy of the bank statement, hold onto it. Write down your own memories or observations. You are a witness to any fraud. Try to be as detailed as possible. Collect the names of witnesses. Other people might have first-hand knowledge of the fraud, and you can give the IRS their names and contact information. Avoid breaking the law. [1] X Research source For example, you shouldn’t open someone’s mail, log onto their computer, or steal files. If you don’t have documents in your possession, you can tell the IRS where they can find them.
Form 3949-A. Use this form to report a business or individual of violating the tax laws. Common examples include failure to pay, kickbacks, false deductions or exemptions, not reporting income, and altering or falsifying tax documents. Form 14157. Use this form to report an abusive tax scheme or fraud perpetrated by a tax return preparer or tax preparation company. Also use this form (and Form 14157-A) if you think the preparer altered your form without your consent. Form 14039. Complete this form if someone stole your identity and used your Social Security Number for a job. Also use this form if you suspect someone could file a tax return using your number. Form 14242. Use this form to report an abusive tax promoter or promotion. Form 13909. Submit this form if you suspect wrongdoing by an exempt organization or employee plan.
identifying information about the taxpayer you are reporting contact information for the taxpayer you are reporting alleged violation of the law short description of the facts (who, what, where, when, etc. ) information about the banks used by the taxpayer whether you consider the taxpayer dangerous information about yourself (optional)
If you don’t give your name, then you can’t testify against the person should they be prosecuted. For that reason, you might want to give your name.
Include copies of all supporting evidence as well. The IRS does not provide updates on the status of any investigation. [5] X Trustworthy Source Internal Revenue Service U. S. government agency in charge of managing the Federal Tax Code Go to source However, you may be contacted if the IRS needs additional information. Provide it promptly.
If the amount in dispute exceeds $2 million, and a few other conditions are satisfied, then you may get 15-30% of the amount the IRS collects. Furthermore, if the case involves an individual, their income must exceed $200,000. The IRS also has discretion to give awards in other cases. The maximum amount of the award is 15% of the amount collected, up to $10 million.
Supporting evidence can include contracts, emails, bank records, ledger sheets, receipts, and books or records. [6] X Trustworthy Source Internal Revenue Service U. S. government agency in charge of managing the Federal Tax Code Go to source You don’t need to have supporting evidence in your possession. However, you should describe them and identify their location with as much detail as possible. [7] X Trustworthy Source Internal Revenue Service U. S. government agency in charge of managing the Federal Tax Code Go to source
name of the taxpayer you are reporting, including any aliases last four digits of their Social Security Number or Employer Identification Number taxpayer’s address taxpayer’s date of birth or estimated age information about whether you have already reported the taxpayer to the IRS alleged violation short description of when and how you uncovered the violation your relationship to the taxpayer amount owed by the taxpayer your identifying information your signature under penalty of perjury
Mail to: Internal Revenue Service, Whistleblower Office—ICE, 1973 N. Rulon White Blvd. , M/S 4110, Ogden, UT 84404.
A claim with merit gets forwarded to an investigator. Generally, it can take five to seven years to complete an investigation. Because it can take so long to decide, you should make sure the IRS has your current contact information. If you move, send your new contact information as soon as possible to Internal Revenue Service, Initial Claims Evaluation Team, 1973 N. Rulon White Blvd. , M/S 4110, Ogden, UT 84404.
Because so much money is at stake, you should hire a tax lawyer to help you make the strongest case that you can. You can find a qualified tax lawyer by contacting your local or state bar association.
