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I've heard that if you want to rat out someone to the IRS for tax fraud that the government will give you a reward of a certain percentage of what they collect. However, you have to fill out a certain form. Does anybody know what form this is and how to obtain it?

My last employer found out I was looking for another job and fired me because of it (that's the reason he gave me). When I filed for unemployment he contested it claiming that I had been reprimanded 4 or 5 times for my job performanace (an outright lie---He never reprimanded me, in fact, a week before he fired me he gave me a raise). Normally I wouldn't rat anyone out to the IRS, but I'm making an exception in this case.

2007-07-20 03:27:54 · 2 answers · asked by Anonymous in Business & Finance Taxes United States

AmyV----how are they committing fraud? A 10 day trip last year to Hawaii paid for on company credit cards. Only 1/2 hour was devoted to business. A personal vehicle, titled in the owner's name, with the company making the bank payment, paying the insurance, and providing all the fuel and services. Last year, the owner built a house. All the A/C and duct work was provided by personnel of the corporation---at no charge to the owner. Sounds like fraud to me.

2007-07-21 03:25:32 · update #1

2 answers

How are they committing tax fraud? you didn't say. However, if you are adamant about reporting them you contact the criminal investigations unit.

While Employer/Employee loyalty is a thing of the past, it is still considered poor practice and unprofessional if they find out you are looking for another job. As an employer, I don't have that much of a problem with continuously looking for opportunities, I did it when I worked for someone else. My partners have the more traditional feelings and become very angry when they find out employees have put their resume out in the field. In my state, if your employment is terminated you are not eligible for unemployment. Except for CA and ME, all other states are at-will and your employment can be terminated without a reason. It does not look like you pursued the unenjoyment path very far, which you could have. An administrative law judge would have had to determine if the employers claims were authentic.

2007-07-20 03:45:53 · answer #1 · answered by Amy V 4 · 1 2

Here it is, straight from the horse's mouth: http://www.irs.gov/compliance/enforcement/article/0,,id=106778,00.html

Although the IRS does pay rewards if information leads to the collection of additional tax, the information you provide must be otherwise unavailable to the IRS. I they are already aware of the information or would reasonably have discovered it in the routine pursuit of their business you won't see any reward money.

2007-07-20 10:36:46 · answer #2 · answered by Bostonian In MO 7 · 1 1

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