Examples of Tax Fraud: How to Report Income Tax Fraud

The IRS will reward you under the Tax Whistleblower Reward Program for identifying new or old transaction loopholes. Here are examples of known income tax fraud against the government that have gained IRS rewards for those who reported them.

General Tax Fraud is committed by individual taxpayers who willfully do not file income tax returns or who fail to pay the correct amount of income, employment or excise taxes. Tax fraud may involve deliberately underreporting or omitting income, overstating the amount of deductions, keeping two sets of books, making false entries in books and records, claiming personal expenses as business expenses, claiming false deductions, and hiding or transferring assets or income.

Corporate Fraud is committed by corporate officers who falsify information about securities and shareholder investments or who do not properly report or pay corporate taxes.

Abusive Return Preparers knowingly overstate deductions or understate income for their clients in exchange for exorbitant fees or a percentage of the underreported tax liability.

Money Laundering involves hiding money or income earned from both legal and illegal activities.

Tax Shelters take advantage of the financial secrecy laws of some foreign jurisdictions and the availability of credit and debit cards issued from offshore financial institutions.

Non-filers argue that taxes are voluntary or unconstitutional. The courts have repeatedly rejected their arguments as frivolous and routinely imposed financial penalties for raising such frivolous arguments. The IRS places a high priority on identifying such tax cheats.

Employment Tax Evasion involves pyramiding (withholding taxes from employees but intentionally failing to remit them to the IRS), off-shore employee leasing, paying employees in cash, filing false payroll tax returns or failing to file payroll tax returns.

Fuel Excise Tax Evasion involves schemes to avoid paying federal and state motor tax needed to maintain and improve our national transportation systems.

Talk to an attorney about the Tax Whistleblower Reward Program.

Don't delay. Contact us now to have your case evaluated so you can be the first to report income tax fraud and obtain a potential reward! Your confidentiality is guaranteed and you have nothing to lose. Get a free consultation about your potential tax fraud case from an attorney with experience in developing complex litigation, working in conjunction with retained and highly experienced tax experts, by filling out the form on this page or by contacting our firms directly at (866) 231-0135.