If the question is how to report tax fraud to the IRS, this complete guide has the answers—with practical steps for using IRS Form 3949-A, how to report abusive tax schemes and fraudulent tax return preparers, and when to file a whistleblower claim for an award under the IRS Whistleblower Office, plus where to submit everything and what evidence matters most to support an information referral or whistleblower application. You’ll learn the difference between reporting individual or business tax fraud with Form 3949-A, submitting Form 14242 for abusive promotions, filing a Return Preparer Complaint with Form 14157 (and 14157-A if your return was altered without consent), and how Form 211 works if you have specific, credible information leading to IRS collections that could qualify for a 15%–30% award—without repeating the same points or drowning in jargon. Whether it’s unreported income, false deductions, failure to withhold required taxes, or organized schemes, this walkthrough shows exactly what the IRS asks for, how to file online or by mail, and what to expect after you report a tax scam or fraud.
What Counts As Tax Fraud The IRS Wants Reported
- The IRS accepts referrals for alleged violations such as false exemptions or deductions, unreported income, false or altered documents, failure to pay or withhold, organized crime, multiple filings, and EIC violations.
- Abusive tax promotions and promoters should be reported separately using the IRS form for suspected abusive schemes.
The Fastest Way: Use The Right IRS Form From The Start
- For individuals or businesses not complying with tax laws, report with Form 3949-A (Information Referral), which can now be completed online.
- For abusive tax promotions or promoters, submit Form 14242 online or by mail/fax as directed by the IRS.
- For complaints about tax return preparers, file Form 14157; if a preparer filed or altered a return without consent and a change to the account is needed, also file Form 14157-A and include a police report and requested attachments.
How To Complete IRS Form 3949-A Correctly
- Form 3949-A collects details about the subject (individual or business), the alleged tax noncompliance, and relevant evidence or documents, and the IRS provides the submission address and online option.
- The IRS Internal Revenue Manual explains employee procedures for screening and routing Form 3949-A referrals, underscoring why clear, specific information helps your report get traction.
Where And How To Submit Your Report
- Form 3949-A can be submitted online through the IRS’s Information Referral experience, or mailed to the address shown on the form if filing by paper.
- Form 14242 (for abusive promotions) can be submitted online, mailed, or faxed per IRS instructions.
- Form 14157 and Form 14157-A can be submitted online or by mail, following the IRS page guidance for preparer complaints.
Considering A Reward? When To Use The IRS Whistleblower Program
- If there is specific, timely, credible information about significant tax underpayments or violations, a whistleblower claim for an award is filed with Form 211 to the IRS Whistleblower Office.
- In general, the IRS pays awards of at least 15% and up to 30% of collected proceeds attributable to the information submitted, when program thresholds and criteria are met under the statute administered by the Whistleblower Office.
- Law firms that handle these cases note the 15%–30% range and typical thresholds (e.g., larger-dollar matters), reflecting how the IRS prioritizes whistleblower claims likely to lead to substantial collections.
What Evidence Makes A Strong Report
- The IRS emphasizes credible, specific details, including names, addresses, TINs (if known), explanation of the alleged violation, tax years involved, and supporting documents where available, so the referral can be acted on efficiently.
- For whistleblower cases, the application should include a narrative of the noncompliance, supporting records, where other evidence can be found, and how the whistleblower learned of the information—all signed under penalty of perjury on Form 211.
Common Scenarios And The Correct IRS Path
- Suspected unreported income or false deductions by an individual or business: file Form 3949-A.
- Aggressive or abusive tax avoidance promotions and promoters: file Form 14242.
- Tax return preparer misconduct or fraud: file Form 14157; if the return was changed without consent and an account fix is needed, add Form 14157-A and a police report.
- Significant, evidence-backed allegations suitable for an award: file Form 211 with the Whistleblower Office.
What Happens After You Report
- The IRS indicates it will investigate complaints and may adjust accounts or issue additional tax refunds with interest where appropriate in preparer-misconduct cases, while most fraud referrals are reviewed and routed internally via the Information Referral process.
- Whistleblower claims are evaluated by the Whistleblower Office, and if collections result from the information, awards are determined within the statutory percentage range and program rules.
FAQs
- What Form Do I Use To Report Someone For Tax Fraud?
Use Form 3949-A to report individuals or businesses suspected of violating tax laws, with an online filing option available. - How Do I Report A Fraudulent Tax Scheme Or Promoter?
Submit Form 14242 for suspected abusive tax promotions or promoters per IRS instructions. - Can I Get A Reward For Reporting Tax Fraud?
Possibly—file Form 211 with the IRS Whistleblower Office for significant, credible cases that can lead to collections; awards generally range from 15% to 30% if criteria are met. - How Do I Report A Bad Tax Preparer?
File Form 14157 for a return preparer complaint, and add Form 14157-A plus a police report if the preparer altered your return without consent and a change is needed to your account.