How To Report Tax Fraud ?
Tax fraud implies incorrect income reflection by either avoiding or hiding it in order to avoid the tax burden. Millions of citizens of the U.S each year, while reporting their income in tax return, avoid mentioning correctly their actual income. They do it intentionally by under reporting their income that they earn from jobs that are unauthorized, through advertising and from other resources.
A report from the year 2008 has unearthed an amount of about $415 billion that has not been paid as tax. This brings a huge loss of revenue for the federal government. As a citizen of the US, it should be your moral responsibility to report such incidents to the IRS. If you ever come across somebody who is unwilling to pay taxes or is using fraudulent means to avoid taxes, then it should be brought in the notice of the concerned officials.
Before reporting any tax fraud, first confirm it with sufficient evidence. Do not check directly with the person who you suspect is committing the fraud. The straight reaction would be a denial. When you know about such people, you may get the required information by rendering your help for filing the tax form. While filling up the form if they leak out some detail or say something that shows their intention to avoid tax, you can take that as evidence and then can subsequently report it. You should, however, never be copying any of the person's personal document as evidence without his or her consent.
You may also come across some people who are not aware of how to file tax and therefore, fail to reflect all their income. It is, of course, not a fraud. Therefore, in such circumstances, you should extend your help in guiding the person in the correct way.
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