Taxpayer asks:
How does someone turn someone else in to the IRS for tax evasion?
Taxgirl says:
There must be something in the water. I’ve received a couple of these types of inquiries lately, so I’m planning to answer a few of them over the next few days. You’re up first.
Reporting tax fraud is actually pretty easy (why would the IRS make this one hard?). Simply fill out a federal form 3949-A (downloadable here as a pdf).
The form asks for identifying information about the taxpayer as well as the alleged violation. There’s a whole slew of fraudulent behaviors to choose from including False Exemption and False Deductions, as well as my favorites: Organized Crime; Kickbacks and Public/Political Corruption.
The IRS asks you to reveal how you know about the fraud and asks about your identity. Failure to provide details about who you are isn’t required but the IRS seems to think it’s helpful. Your information can be kept confidential.
Before you go: be sure to read my disclaimer. Remember, I’m a lawyer and we love disclaimers.
If you have a question, here’s how to Ask The Taxgirl.
I agree there is something in the water, I got this question the other day chatting online. They found out I did taxes and asked the same thing, “how do I report a tax cheat?”. The in further chat with her, I found out she was working “off the books” and that if she did it right it would make her eligible for EITC. She had been missing out for the past several years.
my minor daughter lives with me full time.my ex husband and his wife claimed her on their taxes for the child tax credit,and wasn’t going to tell me or even let her have anything out of it.what should i do and what are the consequenses he could be facing for this?
Caryn, you should file a paper return and be prepared to prove your daughter lived with you. Also understand it is going to take some time to get your refund. Also there will be a question of custody of your child if you have joint custody it will be his word (and proof) against yours.
The consequences he might be facing aren’t that great, just giving back the $1500 to $1800 that taking the child as an exemption and getting the credit would be. Now if he claimed EITC knowing that he wasn’t entitled that is another story.
The changes in EITC this year have been a god sent to may clients I have seen this year but they will also be a real tempting thing for many people to fudge and figure out ways to cheat.
There need to be changes to the 8332 to address joint custody.
I have a question as far as incometax????
I worked in a company for about 3 months or so???
However, i still havent received a 1099- does this mean, i dont get one because of the length of time? or they just forgot to send it?
I have sole custody and primary placement of both of my children, my ex-husband must be claiming them for some W2 benefits even though he doesn’t see them. When we registered for school they tried to tell us the kids would get free lunch and their school fees were waived because of their W2 benefits, needless to say we told the school the situtation and that my income certainly did not meet the criteria for W2 benefits and we paid all the costs. Is this fraud and can this come back to bite me and who can I report this to? He has also told me that he has access to WIC cards (food stamps) that you can buy off the street for pennies on the dollar. We live in Wisconsin.
I have a problem with my daughters dad. He is supposed to take her off on his taxes but didnt tell me he was goin 2 so i told my boyfriend he could since he has lived with us for 8 years. Is that tax fraud?
Is filing taxes as an s corp tax fraud, if you are not incorporated? ( corporation was dissolved for many years that taxes were filed as such.) What are consequences?