The Internal Revenue Service (IRS) has launched a new centralized system that allows taxpayers report tax fraud and other illegal activities more easily online.
Older reporting systems are under pressure as a result of the rise in tax fraud and scam reports in recent years. According to the IRS, the new hub will enable the agency to better utilize the data it gets.
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How does the new IRS tax fraud reporting system work?
Taxpayers used to frequently have to go to several pages or complete separate forms based on the kind of fraud or scam they wished to report. According to the IRS, this structure made reporting challenging and slowed down the processing of tips.
The new system aimed to make it easier for tippers to play an active role in stopping any fraud, reducing processing delays, and bolstering enforcement efforts. IRS Chief Executive Officer Frank J. Bisignano said, “Improvements to the IRS fraud reporting system make reporting suspected wrongdoing easier and simpler and will address historic challenges that have prevented the IRS from making maximum use of the referrals it receives.”
{{/usCountry}}The new system aimed to make it easier for tippers to play an active role in stopping any fraud, reducing processing delays, and bolstering enforcement efforts. IRS Chief Executive Officer Frank J. Bisignano said, “Improvements to the IRS fraud reporting system make reporting suspected wrongdoing easier and simpler and will address historic challenges that have prevented the IRS from making maximum use of the referrals it receives.”
{{/usCountry}}The platform is rebuilt so that it consolidates multiple reporting channels into a single, user-friendly portal where taxpayers can submit detailed information about any suspected fraud, identity theft, unreported income, or other illicit financial activity.
IRS also noted that all submissions will be kept confidential and that there are no penalties for good-faith reporting.
How can you report a possible tax fraud?
Taxpayers can visit the IRS Whistleblower Office page on the official IRS website and fill out an online form that asks for the specifics of the allegation and any supporting documentation in order to report it.
According to IRS guidelines, the submission should be accompanied by:
- The individual or entity you are reporting's name, address, and taxpayer identification number (if available)
- An explanation of the purported violation.
- Documents you could have to back up the allegation
- Describe how and when you learned about the alleged infraction.
- Detailed explanation of your link, if any, with the claim's subject, both now and in the past
- Your contact details
The IRS Whistleblower Office offers monetary rewards for information that leads to the recovery of significant tax revenue. Under current law, eligible whistleblowers can receive between 15 per cent and 30 per cent of collected proceeds in certain cases.
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How to report if you are being targeted for tax fraud?
When a taxpayer suspects they may have been the victim of a scam, they should immediately cut off contact with the suspected scammer and refrain from transferring money or personal information. Additionally, they must promptly notify their bank or other financial institution.
If you believe your identity has been stolen, you should visit IdentityTheft.gov, which is linked by the IRS.