How to Report Tax Fraud to the IRS
We receive questions every day about how to report tax fraud (or report tax evasion). Reporting tax fraud happens in two different ways, both of which require submitting written documents to the IRS. There is no centralized “IRS Fraud Hotline” to call, the IRS is only set up to accept this kind of information in writing.
IRS Forms to Report Fraud
To report tax evasion fraud, there are two options:
- Submit Form 3949A “tip form” to the IRS in which you give them the information you have.
- Submit Form 211 “award claim form” to the IRS in which you provide information to the IRS that will help them detect an underpayment of tax, which makes you eligible for a whistleblower award if they collect tax based on your information.
Things to Consider When Whistleblowing on Tax Fraud
There are additional considerations when reporting tax fraud or deciding whether whistleblowing is the right thing to do, and even more to consider when trying to figure out which of these alternatives would be the best method.
Anonymity, security, protecting confidentiality, availability of evidence, and the type and size of the tax issue are just a few things to keep in mind when considering blowing the whistle or reporting tax fraud. If you are a professional in the tax or accounting field there are additional factors to consider which will be critical to the potential success of your claim.
Common Questions About Reporting IRS Tax Fraud
- How to turn someone in for tax evasion anonymously?
- Are whistleblowers protected?
- What is the difference between Form 211 and Form 3949?
- How do whistleblowers get paid?
- What is the smallest underpayment that can be reported that will still result in an award?
- What if the underpayment of tax wasn’t fraud or intentional?