Tax fraud is a serious crime that is in direct violation of U.S tax laws. Anybody that knows of or suspects an individual to be in violation of these laws should find out here how to report tax fraud and report it immediately to the Internal Revenue Service. Reporting tax fraud is a relatively easy procedure that has been made even more appealing with the introduction of a report tax fraud reward.
How to report tax fraud
Reporting tax fraud is very simple. The tax whistleblower should send a letter to the Internal Revenue Service containing the following information: the name and address of the violator, the taxpayer identification number, a brief description of the violation, the years involved and an estimated amount of unreported income.
Information for Tax Whistleblowers
The IRS has a tax whistleblower office that is designed to financially reward anybody that blows the whistle on persons that are committing tax fraud. A tax whistleblower can receive as much as 30% of the additional tax, penalties and other amounts collected by the IRS. In order to be eligible for the reward the tax whistleblower must provide the IRS specific and credible information about significant federal tax issues. For those that report tax fraud reward options can vary. If the taxes and penalties in dispute amount to over $2 million then the tax whistleblower will be entitled to between 15 and 30 percent of the total amount recovered and if the case deals with an individual then the gross income must exceed $200,000. There is also a reward option available for a Â tax whistleblowerÂ who does not meet the $2 million threshold; however awards through this program are significantly less.
For more information on how to report tax fraud and becoming a tax whistleblower it is highly recommended that you speak with an experienced whistleblower attorney at our personal injury law firm. Please fill in an online form to receive legal help and important information on tax fraud and the whistleblower Act.