WASHINGTON, DC: The Internal Revenue Service Building is shown in Washington, DC.
(Photo by Win McNamee/Getty Images)This week is International Fraud Awareness Week. The Internal Revenue Service wants to send a friendly reminder to taxpayers. It's sharing how to report tax-related fraud in our community. It also provides tips on how to protect personal and financial information from scam artists and tax schemes.
The IRS Office of Fraud Enforcement and IRS Criminal Investigation aim to raise awareness of fraud, scams, and schemes affecting taxpayers.
The IRS also encourages people, businesses, and tax professionals to take time now to learn to recognize red flags and to ensure defenses are in place to stop scammers.
How to Report Tax Fraud
There are many types of tax fraud, including scams targeting individuals, tax-related schemes, and fraud committed by taxpayers who knowingly file inaccurate information.
The public can assist in identifying and investigating possible fraud of individuals and businesses by filing Form 3949-A, Information Report Referral. Form 3949-A is a tax-related public use form submitted voluntarily by individuals to report alleged violations of tax law by others. All submissions are confidential.
Some tax law violations you can report are false exemptions and deductions, multiple tax filings, organized crime, and political corruption.
You can also report kickbacks, unreported income, illegal drug income, gambling income, and failure to pay or withhold tax.
The IRS reviews all submissions and determines the appropriate action to take. This may include an audit or possible criminal prosecution. The information you report regarding fraudulent tax-related activity can sometimes lead to a reward.
Every year, the IRS compiles a Dirty Dozen list that brings public awareness to common scams. This year’s list included phishing scams, Employee Retention Credits, Fuel Tax Credit claims, and fake charities.
Anyone experiencing these scams or schemes is encouraged to submit Form 14242, Report Suspected Abusive Tax Promotions or Preparers.
You should mail or fax a completed Form 14242 and any supporting materials to the IRS Lead Development Center.
For more information, go to fraudweek.com
