How to Report a Business You Suspect Is Committing Tax Fraud

If you suspect a business is committing tax fraud, you should report it. Follow these steps.

Instructions

Difficulty: Moderately Easy

Things You’ll Need:

• Internet access
• Computer

Report Suspected Tax Fraud

1. Visit the IRS Web site (see Resources below) to obtain contact information for reporting a business that you suspect is committing tax fraud .
2. Gather the appropriate information. You must supply the IRS with the name of the business, the employer identification number, the years the fraud covers, approximately how much money is involved and a brief description of how company committed the fraud.
3. Fill out and submit IRS form 3949A. You can do this online at the IRS Web site (see Resources below) or mail the form to the IRS (the address is on the Web site). You also may mail a letter describing the fraud activity to the IRS.
4. Get the advice of a lawyer. If you are not certain that the business in question is committing tax fraud, consult with a lawyer to avoid making false accusations. Use the American Bar Association Web site (see Resources below) to find a business law attorney in your area.

Tips & Warnings

• While the IRS will ask for your name and contact information when you fill out your report, you have the option to remain anonymous. However, because you may qualify for a monetary reward from the IRS for reporting tax fraud, supplying this information can benefit you.
• Due to confidentiality restrictions, the IRS probably will not reveal the outcome of their investigation. This investigation can take years, depending on how complicated the case turns out to be.