Where and how to report suspected tax fraud

The IRS has a dedicated channel for reporting tax fraud: the Form 13909, also called the "Information Referral." You can file it online through the IRS website, by mail, or by phone. The online form is the fastest route — you fill it out on irs.gov, and the IRS logs it into their investigation queue the same day. If you mail it, send it to the IRS Criminal Investigation office in your region; the address is on the form itself. You can also call the IRS Tax Fraud Hotline at 1-800-829-0433 and report over the phone, though you will need to follow up with a written Form 13909 within a few days.

You do not need to be a tax professional or have proof of fraud to file the form. The IRS asks for whatever details you have: the person's or business's name, their tax ID number or Social Security number if you know it, what you suspect they did (underreporting income, claiming false deductions, hiding money offshore), and when you became aware of it. If you have documents — bank statements, emails, receipts, payroll records — attach copies, not originals. The IRS will not return them.

Reporting is confidential. The IRS does not tell the person you reported them, and your name is not shared with them during any investigation. You will not receive updates on whether the IRS acted on your report; the agency does not confirm investigations or their outcomes to the person who filed the referral.

Key Takeaways

  • Form 13909 is the official IRS document for reporting tax fraud, and you can file it online, by mail, or by phone.
  • You do not need proof or professional credentials to report — the IRS investigates based on the details you provide.
  • Reporting is confidential, and the IRS will not tell the person you reported them or update you on the outcome.
  • The online form at irs.gov is the fastest method and creates an immediate record in the IRS system.
  • If you have documents supporting your suspicion, attach copies to your report; the IRS will not return them.

What counts as tax fraud versus a mistake

Tax fraud requires intent — the person knowingly filed a false return or hid income on purpose. A mistake, like miscalculating a deduction or forgetting to report a small amount of income, is not fraud. The IRS distinguishes between the two because fraud is a crime and mistakes are civil errors that the IRS corrects through audits and penalties.

Examples of fraud include: claiming dependents who do not exist, reporting personal expenses as business deductions when there is no business, hiding cash income, inflating charitable donations, claiming a home office when you do not work from home, or using someone else's Social Security number. Examples of mistakes include: adding wrong numbers on a return, missing a 1099 form, or misunderstanding which expenses may have access to for a deduction.

If you suspect fraud, describe what you observed as specifically as you can on Form 13909. The IRS Criminal Investigation division will review it and decide whether to open an investigation. You do not have to prove intent — that is the IRS's job.

Who the IRS investigates and how long it takes

The IRS Criminal Investigation division handles tax fraud cases. They prioritize cases involving large amounts of money, organized schemes, or public figures, because those cases have the most impact. A report about a small underreporting may be logged but not investigated immediately, or may be referred to the civil audit division instead of criminal investigators.

If the IRS opens a criminal investigation, it typically takes one to three years before charges are filed, if they are filed at all. Most investigations end without prosecution — the IRS may simply audit the person and assess back taxes and penalties. Criminal prosecution happens in fewer than 10 percent of investigations, and those cases usually involve significant fraud or repeated violations.

You will not know whether an investigation happened. The IRS does not notify the person who filed the report, and it does not release information about ongoing or closed investigations to the public.

Reporting fraud by a business or employer

If you suspect a business is committing tax fraud — for example, paying employees in cash without reporting it, inflating business expenses, or hiding revenue — you still use Form 13909. Include the business name, the owner's name if you know it, their tax ID number (EIN), and a description of what you observed.

If the fraud involves wage theft or misclassification of workers (calling employees contractors to avoid payroll taxes), you can also report to the Department of Labor or your state's labor department. If it involves money laundering or organized crime, you can report to the FBI. Form 13909 is still the right channel for the tax component, but these other agencies handle related violations.

If you are a current or former employee reporting your own employer, you may also be protected under whistleblower laws. The IRS has a separate whistleblower program for people who report fraud and have direct knowledge of it. That program can result in a financial award if the IRS recovers more than $2 million as a result of your report, though awards are rare and the process takes years.

What happens after you file Form 13909

After you submit the form, the IRS logs it into their system. A reviewer reads it and decides whether to refer it to Criminal Investigation, to the civil audit division, or to close it without action. This initial review usually takes a few weeks to a few months.

If Criminal Investigation opens a case, they will contact the person under investigation — usually by showing up at their home or business with a search warrant, or by sending a letter asking them to meet with an agent. The person will not be told who reported them. The investigation may include interviews, document review, bank record analysis, and surveillance.

If the IRS finds evidence of fraud, they can pursue criminal charges (which go to the Department of Justice and a federal court), civil penalties (which the IRS assesses directly), or both. Criminal conviction can result in prison time and fines. Civil penalties are typically 75 percent of the unpaid tax, plus interest.

Reporting fraud you witnessed at work or in your community

If you witnessed fraud firsthand — you worked at a business that was hiding income, you saw a neighbor claiming false deductions, or you know someone is using a fake Social Security number — you have direct knowledge. Write down what you saw, when you saw it, and any documents you have. Be as specific as possible on Form 13909.

If you are reporting your employer and fear retaliation, document the retaliation if it happens and report it to the Department of Labor's Occupational Safety and Health Administration (OSHA). Retaliation against someone for reporting tax fraud is illegal, though proving it can be difficult.

If you are reporting someone you know personally, understand that a criminal investigation could result in prosecution and prison time. The IRS does not weigh personal relationships — they investigate based on the facts you provide.

Frequently Asked Questions

Can I report tax fraud anonymously?

Yes. You can file Form 13909 online or by mail without providing your name or contact information. The IRS will not try to identify you. However, if you want to be considered for the whistleblower award program (which requires a larger fraud amount and recovery), you must provide your name and contact details.

What if I am not sure whether it is fraud or just aggressive tax planning?

Report it anyway. The IRS distinguishes between fraud and legal tax avoidance strategies. If what you observed is legal, the IRS will close the case. If it is fraud, they will investigate. You do not have to make that information yourself.

Do I need a lawyer to report tax fraud?

No. Form 13909 is straightforward and you can file it yourself. A lawyer is not necessary unless you are the subject of an investigation or you are pursuing a whistleblower award, in which case legal advice may help you protect yourself.

What if the person I am reporting is a friend or family member?

The IRS investigates based on the facts, not the relationship. If you report fraud, understand that it could result in criminal charges and prison time. Make sure you are certain about what you observed before you file.

How long does it take the IRS to investigate and prosecute?

Criminal investigations typically take one to three years. Prosecution is rare — most cases end in civil penalties or audit adjustments. You will not receive updates on the timeline or outcome.