What is Tax Fraud?

As working residents of a country we are legally responsible for filling out a tax return every year when required, to determine the amount of tax we owe to the government. Although, a large percentage of Americans do take the effort to properly file their tax returns. A small percentage of individual try to cheat out of their tax obligation, committing a tax fraud.

You commit a tax fraud if you intentionally violate your own legal duty to voluntarily file income tax returns and/or pay the accurate amount of income, employment and excise taxes that you owe. By neglecting your legal duty you pose a threat to the tax administration and economy and will be charged with tax fraud by the Criminal Investigation (CI).


Tax Law Violations

If you violate the tax law by misrepresenting your income or fudging numbers to avoid paying taxes you most likely be committed by tax fraud. Some of the ways you can break the tax law and commit tax fraud include:


  • Claiming false deductions
  • Concealing or transferring assets or income
  • Knowingly changing your income
  • Over reporting the amount of deductions
  • Possessing two set of books
  • Recording personal expenses as business expenses
  • Using false amounts in books and records



Reporting Suspected Tax Fraud

If you suspect that an individual or company is violating the tax law you can anonymously report it to help prevent tax fraud. You can report this fraudulent activity is by completing the Form 3939-A on the Internal Revenue Service Website. Once completed, you can print it and mail your form to:


    Internal Revenue Service Fresno, CA 93888

If you do not wish to complete the form, you can mail a letter to the IRS with the following details of the fraudulent activity in your letter. Important details to add in your letter include:


  • The taxpayer's social security number
  • A brief explanation of the suspected fraud, and how you became aware of it
  • The approximate amount of money underreported
  • Your contact information (name, address, and telephone number)


Although, you are not obliged to identify yourself, but if you do you can win an award.

For concerns related to tax fraud, it is best to have a skilled tax attorney handle the job.  Find out more.

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Identity theft comes in many forms.

A person\92s identity can be 'borrowed' for the purpose of creating fictional credit cards or a person\92s entire identity can be usurped to the point where they can have difficulty proving that they really are who they claim to be.

Up to 18% of identity theft victims take as long as four years to realize that their identity has been stolen.

There are many ways to protect your personal identity and many steps you can take to prevent your identity from being stolen:

*Never give out unnecessary personal information
*Never provide bank details or social security numbers over the Internet
*Always remain aware of who is standing behind you when you type in your personal credit codes at ATM machines and at supermarket checkout swipe machines.