Newsbreak: Don’t Risk Legal Issues – IRS Warns Taxpayers to Avoid Violations and Report Fraud

Filing a tax return can be a stressful experience for many Americans, and it is important to be aware of current tax rules to avoid mistakes that can cause delays. Inadvertent mistakes are common, but it’s crucial to avoid violations that can lead to serious delays and potential legal issues. The IRS keeps a watchful eye on suspicious activity, whether intentional or not, including false exemptions or deductions, kickbacks, failure to pay taxes, unreported income, organized crime, and failure to follow tax laws.

To avoid making these mistakes, it’s essential to be aware of what constitutes a violation and to ensure that everyone you work with is in compliance. If you suspect someone is purposely committing tax fraud, you can use the 3949-A form to report it online. The identity of the person making the report will be kept confidential, and the report cannot be made over the phone. Additionally, rewards can be claimed for correctly identifying those who are purposely committing tax fraud, and this can be claimed using Form 221.

Other types of tax fraud can also be reported to the IRS, including abusive tax promotion or avoidance schemes, fraudulent activity, and abusive tax schemes by tax return preparers or tax preparation companies. It’s also possible to report identity theft and the use of a social security number for employment or tax returns.

Being informed and aware of potential tax violations can make the process of filing tax returns smoother and less stressful. By avoiding mistakes and reporting suspicious activity, taxpayers can ensure that they comply with tax laws and avoid potential legal consequences.