How to Report Tax Fraud: A Step-by-Step Guide to Contacting the IRS and Local Authorities

Introduction

Tax fraud undermines the integrity of the tax system and places an unfair burden on compliant taxpayers. Reporting suspected tax fraud is essential to maintain fairness and accountability. This guide provides a step-by-step approach to reporting tax fraud to the Internal Revenue Service (IRS) and local authorities.

Recognizing Tax Fraud

Tax fraud involves intentional acts to evade tax obligations. Common indicators include:

  • Underreporting Income: Failing to report all sources of income.
  • Inflating Deductions or Expenses: Claiming deductions or expenses not actually incurred.
  • False Information on Tax Returns: Providing incorrect or misleading information to reduce tax liability.
  • Failure to File Tax Returns: Not filing required tax returns.

    • Recognizing these signs is the first step in identifying potential tax fraud.

    Reporting Tax Fraud to the IRS

    The IRS offers several avenues for reporting suspected tax fraud:

    1. Reporting Suspected Tax Fraud Activity

  • Form 3949-A: Use this form to report suspected tax fraud, including unreported income or false deductions.

    • – How to File:
    – Online: Download Form 3949-A from the IRS website.
    – By Mail: Send the completed form to:
    Internal Revenue Service
    Fresno, CA 93888
    – Information to Include:
    – Name and address of the individual or business.
    – Taxpayer Identification Number (Social Security Number for individuals or Employer Identification Number for businesses).
    – A brief description of the alleged violation, including how you obtained the information.
    – The years involved.
    – Estimated dollar amount of unreported income.
    – Your contact information (optional).

    While you can remain anonymous, providing your contact information may assist in the investigation. (irs.gov)

    2. Reporting Tax Preparer Misconduct

  • Form 14157: If you suspect a tax preparer of misconduct, such as filing fraudulent returns or charging excessive fees, use this form.

    • – How to File:
    – Online: Download Form 14157 from the IRS website.
    – By Mail: Send the completed form to:
    Internal Revenue Service
    Fresno, CA 93888

    Reporting tax preparer misconduct helps maintain the integrity of the tax preparation profession. (irs.gov)

    3. Reporting Identity Theft

  • Form 14039: If you believe your personal information has been used to file a fraudulent tax return, submit this form.

    • – How to File:
    – Online: Download Form 14039 from the IRS website.
    – By Mail: Send the completed form to the address specified on the form.

    Prompt reporting of identity theft helps the IRS take corrective action and protect your tax records. (irs.gov)

    Reporting Tax Fraud to Local Authorities

    In addition to federal reporting, state and local authorities also handle tax fraud cases. Procedures vary by jurisdiction, but generally include:

  • State Tax Agencies: Each state has its own process for reporting tax fraud. For example, the New York State Department of Taxation and Finance allows reporting via an online form, phone, fax, or mail. (tax.ny.gov)
  • Local Tax Authorities: Contact your local tax office or revenue department for specific reporting procedures.

    • Additional Reporting Channels

  • Treasury Inspector General for Tax Administration (TIGTA): TIGTA investigates misconduct within the IRS and can be contacted at 1-800-366-4484 or through their website. (tigta.gov)
  • Whistleblower Program: Individuals with specific and credible information about tax law violations may be eligible for a reward by filing Form 211, Application for Award for Original Information. (irs.gov)

    • Protecting Yourself from Tax Scams

    Be vigilant against tax-related scams, such as phishing emails or fraudulent calls claiming to be from the IRS. To report such scams:

  • Email: Send details to phishing@irs.gov with the subject line “IRS Phone Scam.”
  • Phone: Call the IRS at 800-829-1040.
  • TIGTA: Report IRS impersonation scams to TIGTA at 800-366-4484. (justice.gov)

    • Conclusion

    Reporting tax fraud is a crucial step in upholding the integrity of the tax system. By following the outlined procedures, you can contribute to a fair and just tax environment. Always ensure that you have accurate and specific information before reporting, and utilize the appropriate channels to address your concerns.

    Key Facts

  • Form 3949-A: Used to report suspected tax fraud to the IRS.
  • Form 14157: Used to report tax preparer misconduct.
  • Form 14039: Used to report identity theft related to tax returns.
  • TIGTA Hotline: 1-800-366-4484 for reporting IRS-related fraud.

    • Sources

  • Internal Revenue Service, 2025/https://www.irs.gov/help/report-fraud
  • Internal Revenue Service, 2025/https://www.irs.gov/help/report-fraud/report-tax-fraud-a-scam-or-law-violation
  • Internal Revenue Service, 2025/https://www.irs.gov/compliance/criminal-investigation/reporting-fraud-and-abuse-within-the-irs-e-file-program
  • New York State Department of Taxation and Finance, 2025/https://www.tax.ny.gov/help/contact/fraud/report-tax-fraud.htm
  • Treasury Inspector General for Tax Administration, 2025/https://www.tigta.gov/reportcrime-misconduct
  • U.S. Department of Justice, 2025/https://www.justice.gov/usao-mdpa/pr/us-attorney-and-irs-warn-potential-tax-cheats-timely-file-accurate-and-complete-tax-0

    • Readability Level

    This article is written at a 10th-grade reading level.

    Tags

  • Tax Fraud Reporting
  • IRS Tax Fraud
  • State Tax Fraud
  • Tax Evasion Reporting
  • Tax Scams
  • Whistleblower Program
  • Taxpayer Protection

Subcategory

Government Agencies