What's the big deal about tax fraud and why should I care if someone isn't paying their taxes?
It is a free rider problem whereby those people who are not paying their proper share are taking a free ride on the backs of those people who do pay their taxes. Not only is it unfair, it is also illegal. And it results in a higher tax rate for those that do pay.
What are tax law violations?
If you are someone that has violated any of the tax laws by fudging numbers or exaggeration of your income, then you have undoubtedly committed a tax crime. A few common ways that the people of the country commit tax fraud are given below:
- Transferring or concealing income or assets
- Over-reporting of the amount that must be deducted
- Recording of personal expenses as business expenses
- Records and books with fake sums of money discussed in them
- Saying of false deductions
- Intentionally changing one's income
- Possessing 2 sets of books of accounts
Should you report a suspected tax crime to the property authority?
Naturally it is a yes. You need to definitely report suspected cases of tax crime. If you believe tax crime by an individual or a company or business, you can report it anonymously and help in the prevention of tax fraud.
Go to the Internal Income Services web site and register your complaint using Form 3939-A. If not, you can always use snail mail to reach your complaint to the offices of the Cash dept.
It is important to fill in a few details in the letter you'll be sending to the IRS. Don't forget to mention the taxpayer's social security number, the rough amount that you think is under- reported, a quick clarification of the suspected fraud that has been committed and your contact information. As a whistleblower you can even be entitled to compensation as a reward for the risk taken.
What are tax law violations?
If you are someone that has violated any of the tax laws by fudging numbers or exaggeration of your income, then you have undoubtedly committed a tax crime. A few common ways that the people of the country commit tax fraud are given below:
- Transferring or concealing income or assets
- Over-reporting of the amount that must be deducted
- Recording of personal expenses as business expenses
- Records and books with fake sums of money discussed in them
- Saying of false deductions
- Intentionally changing one's income
- Possessing 2 sets of books of accounts
Should you report a suspected tax crime to the property authority?
Naturally it is a yes. You need to definitely report suspected cases of tax crime. If you believe tax crime by an individual or a company or business, you can report it anonymously and help in the prevention of tax fraud.
Go to the Internal Income Services web site and register your complaint using Form 3939-A. If not, you can always use snail mail to reach your complaint to the offices of the Cash dept.
It is important to fill in a few details in the letter you'll be sending to the IRS. Don't forget to mention the taxpayer's social security number, the rough amount that you think is under- reported, a quick clarification of the suspected fraud that has been committed and your contact information. As a whistleblower you can even be entitled to compensation as a reward for the risk taken.
About the Author:
What is the effect of tax fraud to someone and the way the implementation of whistleblower act helps? Find out an answer for it from the draft of Rechelle MacFarland.
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