Where and how to report suspected tax fraud

The IRS has a dedicated channel for reporting suspected tax fraud: the Form 13909, also called the Fraud Referral Form. You file it with the IRS Criminal Investigation division, which is separate from the regular tax processing system. The form asks you to describe what you observed, who you believe committed the fraud, and what documents or evidence you have.

You can submit Form 13909 by mail to the IRS Criminal Investigation office in your region, or you can report online through the IRS website at irs.gov. The online option is faster and requires no printing or postage. Both routes reach the same investigators; the difference is only in how you deliver the information.

You do not need to be certain about what you saw. The IRS asks you to report what you suspect, and investigators decide whether it warrants further work. Many fraud reports come from people who noticed something odd but are not tax professionals themselves.

Key Takeaways

  • File Form 13909 with IRS Criminal Investigation, either online at irs.gov or by mail to your regional IRS office.
  • Include specific details about what you observed, who you believe committed the fraud, and any documents that support your suspicion.
  • The IRS does not pay informants for fraud reports, and your identity may be disclosed if the case goes to court.
  • Reports are investigated by IRS Criminal Investigation, a separate unit from regular tax audits, and can take months or years to resolve.
  • You can also report fraud to the Treasury Inspector General for Tax Administration (TIGTA) if you suspect IRS employee misconduct.

What counts as tax fraud the IRS investigates

Tax fraud means deliberately providing false information on a tax return to reduce the amount of tax owed. This includes inflating deductions you did not actually have, hiding income, claiming dependents who do not exist, or falsifying business expenses. The key word is deliberate — honest mistakes on a return are not fraud.

Common fraud schemes the IRS pursues include identity theft (someone filing a return using your Social Security number), cash-based businesses underreporting income, inflated charitable donations, fake home office deductions, and false business losses. The IRS also investigates people who help others commit fraud, such as tax preparers who knowingly file false returns for clients.

Fraud is different from aggressive tax planning or taking deductions the IRS might later challenge. If someone takes a risky deduction and loses an audit, that is not fraud unless they knew the deduction was false when they claimed it. The difference matters because fraud can result in criminal charges, while a lost audit usually results only in owing back taxes and penalties.

What information to include in your report

When you file Form 13909, provide as much detail as you can about what you observed. Include the person's name, address, and Social Security number or employer identification number if you have it. Describe what you saw or learned that made you suspicious — for example, "The business reported $50,000 in annual revenue but the owner told me they make $200,000 a year" or "I saw the person claim three children as dependents on their return, but they told me they have no children."

Attach copies of any documents that support your report: a copy of the tax return itself, emails, text messages, bank statements, business records, or anything else that shows the discrepancy. Do not send originals; send copies only. If you do not have documents, describe what you know and where the information came from — for example, "The person told me this in a conversation on March 15, 2024" or "I saw this on their social media account."

Explain why you are reporting this now. Did you recently discover the fraud? Did the person brag about it? Did you see a tax return by accident? Context helps investigators understand whether the information is reliable and whether it is recent enough to matter.

How the IRS handles your report after you file it

After you submit Form 13909, your report goes to IRS Criminal Investigation, which decides whether to open an investigation. This is not automatic. The IRS receives thousands of fraud reports each year and investigates only those with strong evidence or large dollar amounts. If your report describes a suspicion but no concrete evidence, it may be filed without investigation.

If investigators do open a case, the process is slow. Criminal investigations typically take six months to two years or longer. During that time, you will hear nothing from the IRS — they do not update reporters on the status of cases. Investigators may contact you if they need more information, but often they do not.

If the investigation results in charges, the case goes to the Department of Justice for prosecution. Criminal tax fraud can result in prison time, fines, or both. Civil penalties (money owed to the IRS) are separate from criminal penalties and can be imposed even if no criminal charges are filed.

Your privacy and protection when reporting fraud

The IRS keeps your identity confidential during the investigation, but that confidentiality ends if the case goes to trial. If the person accused of fraud is prosecuted, your name and testimony may become part of the court record, which is public. You should assume that if you report someone and they are charged, they will eventually learn who reported them.

The IRS does not pay informants or reward people for reporting fraud. You will not receive money or a tax credit for filing Form 13909. Some other government agencies (like the SEC for securities fraud) do pay informants, but the IRS does not. Report fraud because you believe it is wrong, not because you expect payment.

If you fear retaliation after reporting fraud, contact local law enforcement or the FBI. Retaliation for reporting a crime is itself a crime in most circumstances, though proving it can be difficult.

Reporting IRS employee fraud or misconduct

If you suspect an IRS employee of fraud, theft, or other misconduct, do not file Form 13909. Instead, report to the Treasury Inspector General for Tax Administration (TIGTA). TIGTA is an independent office that investigates misconduct by IRS employees.

You can report to TIGTA online at tigta.treasury.gov or by calling their hotline. TIGTA handles reports of employees stealing taxpayer information, accepting bribes, filing false returns, or abusing their access to tax records. These reports are taken seriously because they involve people with authority over the tax system.

When to report to other agencies instead

Some fraud situations belong with a different agency. If the fraud involves identity theft and you are the victim, report it to the Federal Trade Commission at identitytheft.gov in addition to the IRS. If the fraud involves a financial institution, securities, or investment scheme, report it to the FBI's Internet Crime Complaint Center (IC3) at ic3.gov or to the Securities and Exchange Commission.

If you are a tax preparer or accountant and you discover a client is committing fraud, you have a legal obligation to withdraw from representing them. You do not have to report them to the IRS (that is not required by law), but you cannot continue preparing their false returns. Some states have additional rules for tax professionals, so check your state's requirements.

If you discovered the fraud because you work for the company or organization involved, consider reporting internally first — to management, compliance, or an ethics hotline if one exists. Many organizations have internal processes for reporting fraud, and using them may protect you legally and professionally.

Frequently Asked Questions

Do I have to give my name when I report fraud?

You can file Form 13909 anonymously, though providing your name and contact information helps investigators follow up if they need more details. Anonymous reports are investigated, but investigators cannot contact you for clarification, which may limit what they can do with the information.

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

Report it if you believe the person deliberately claimed something false on their return. The IRS will sort out whether it meets the legal definition of fraud. It is better to report something that turns out not to be fraud than to stay silent about something that is.

Can I report fraud if I do not have the person's tax return?

Yes. Describe what you know and how you know it. If you saw a return, describe what was on it. If you heard about it secondhand, say so. Investigators will decide whether the information is enough to pursue.

Will the IRS tell me if they prosecute the person I reported?

No. The IRS does not update reporters on case outcomes. You may learn about a prosecution through news reports or public court records, but the IRS will not contact you to say whether your report led to charges.

What if the person I am reporting is my employer or family member?

You can still report them. The IRS does not consider your relationship to the person when deciding whether to investigate. However, understand that reporting a family member or employer may damage that relationship permanently, and the person will likely learn who reported them if charges are filed.