Filing tax fraud report helps authorities put a stop to the fraudulent scheme faster. People don’t usually bother to report fraudulent schemes that they see off and online, not until they become the next victim. What these people don’t realize is that if someone had only taken the initiative to file a report against this suspicious scheme, then the sooner the authorities could have looked into it and put an end to their malicious operation. A single report can help save you and other potential victims from losing millions of dollars.
Filing a Tax Fraud Report
Before you can file a tax fraud report, you must first learn to identify how tax frauds operate. To give you an idea, here are some different forms of tax fraud:
Tax Settlement Fraud
Tax settlement fraud pertains to malicious companies claiming that they can help you save money by striking a tax settlement agreement with the Internal Revenue Service (IRS). It is only through Offer in Compromise can your tax settlements be reduced. And it can be quite difficult to qualify to this arrangement. IRS go through some serious questioning and investigation in order to determine how much of your tax debt can you settle. This option is only made available for special cases. Companies who claim that they can get the same deal for you is probably lying.
Phishing Fraud
Phishing fraud is commonly used by fraudsters to gain access to your financial information. The fraudster engages their victim to this scam by sending out emails demanding settlement of your outstanding tax debt. The email is supposedly from the IRS office, containing instructions and a payment link which you can use to send payment. The payment link is designed to direct you to a legit looking clone site of the IRS or of your bank. The fraudster then gathers the financial information that you key into this clone site, which they can later use to make unauthorized fund transfers.
These are just some of the most commonly used forms of tax fraud. To learn more about other forms of tax fraud you may visit the IRS website.
- If you suspect that you have fallen victim to any of these tax fraud schemes, then the next step that you should take is to file a fraud report with the IRS. To file a report, you will need to download and fill up the referral form or the 14242 form from the IRS site. Send a filled out copy of this form along with other relevant attachments to eoclass@irs.gov or via snail mail at Internal Revenue Service Lead Development Center, Stop MS5040, 24000 Avila Road, Laguna Niguel, California 92677-3405.
- You may also file a tax fraud report to IC3 or the Internet Crime Complaint Center. This center is affiliated with the Federal Bureau of Investigation. The IC3 website offers an easy to use online platform that will allow you to detail your tax fraud report. The information that you provide will then be forwarded to the FBI’s office. An FBI officer will then review the details of your report and coordinate an action plan with the proper authorities.
