Turn In Tax Cheats And Make Money

Make money turing in tax cheatsWhile most people don’t like to pay taxes, what’s even worse is when you know someone who should be paying taxes, but they are cheating on them to not pay their fair share. According to the IRS, taxpayers underpay their taxes by some $300 billion. If you have enough information on how they are cheating and can document the cheating, it could be worth a lot of money depending on the amount of money the person you know is under-reporting. The IRS may be willing to pay you up to $10 million for the information you provide. The bigger the cheating you report, the more you’re likely to receive.

The most important thing to claim your reward is quality documentation. Without solid documentation of the cheating that’s going on, it’s unlikely that the IRS will investigate the charges. If you contact the IRS and merely say that you know your neighbor is cheating on their taxes, but are unable to provide any proof of how exactly your neighbor is cheating, the IRS will likely not investigate. As might be expected, the IRS receives numerous reports of cheating from people trying to get back at one another or from people that think someone might be cheating, but really don’t have any idea if they are or not. Unless you are able to produce some type of documentation along with your accusation, the IRS likely will place its limited resources toward other accusations where they do have solid documentation.

If you feel you have information and documentation to back up your report, the IRS would be extremely interested in hearing from you. You can contact the IRS toll free at 1-800-829-0433 if you suspect tax fraud. When contacting them, you’ll be expected to provided the following information:

  • Your name or an alias
  • The name and address of the person you’re reporting
  • The length the tax fraud has taken place including the years
  • The social security number or Employer Identification Number of the person you’re reporting
  • Any relevant financial records which pertain to the fraud
  • Any documents or records which substantiate the fraud
  • The date of birth of the person you’re reporting
  • The rewards for reporting the tax cheat can be hefty. If the IRS does investigate and recover money from your information, you may be entitled to anywhere from 1% and 15% of the money they recover – up to $10 million. The IRS has a minimum payout of $100 which means any tax cheating reported has to be in the thousands of dollars for any chance of you receiving a reward. For more information on the rewards, you can visit irs.gov and look at publication 733 – Rewards for Information Provided by Individuals to the Internal Revenue Service.

    This entry was posted in Making Money, Taxes. Bookmark the permalink.

    54 Responses to Turn In Tax Cheats And Make Money

    1. Lol, this is a money saving tip? I don’t think I’d be comfortable backstabbing someone I know just for a few thousand measley dollars. Solid personal relationships are way more valuable than that!

      If the person owes THAT much in tax that I would get a million dollar reward, I’m sure something can be worked out between that person and I. :p

    2. Pingback: » Would You Report Tax Fraud for Money? on Blueprint for Financial Prosperity

    3. makingourway says:

      ugh…couldn’t do it. too nasty. also to learn so much you’d be in a position of trust. can someone buy out your trust?

    4. davis says:

      If an employee were embezzling money from me, even if it was a friend, I wouldn’t think twice about calling the cops. People that don’t pay taxes are basically embezzling money from the US government in my opinion.

      The problem I see is that you have to do all the investigating with this program where it should be the responsibility of the tax authorities to follow up on tips just like the police do. Asking for me to do all the work makes it much less likely that I would do it. If on the other hand, there was a tip line with a reward and I knew someone was cheating on taxes, I would call. Just becasue its the government doesn’t mean they shouldn’t be paying what they owe.

    5. Max says:

      And now it’s VH1’s 100 Most Awesomely Sleazy Ways to Get Back at Your Neighbour!

    6. Pingback: fivecentnickel.com

    7. Pingback: Free Money Finance

    8. Pingback: Carnival of the Capitalists 132 » The Small Business Buzz

    9. jeff keith says:

      I know somone who has a painting business , makes tons of money, pays everyone under the table and pays no taxes, and he owes ME money. How can I report him without his address or ss number?

    10. rick defilippo says:

      i do know of a couple thathas been renting out rental propertys for well over ten years, i do know that i rented from them and they made me pay in cash so they did not have too pay income taxs on it, they confided in me and i saw several of there property tennates paying them in cash, i do know this to be a fact and think it can be proved by the irs checking there property they own and seeing they do not even put the money in the bank at the end of every month, they take it in cash and use only there social sucurity for income,i know they take 2000.00 a month that i am sure of, what can i do???to turn them in?

    11. dan says:

      now what if you did not like the person? that if they had done something so bad to you that they to pay for what they had done to make them poor and teach them a lesson in life would it then be worth it? ask yourself could you screw over a person that messed with you first? think about it!!!!!

    12. Concerned Cit says:

      Personally, I was friends with someone for many years, and today I learned that she was telling my boss false info about me, and I know for fact that she is being paid under the table and not paying taxes, and I definatly plan on turning her in, she is a loser, a liar, and a trouble maker, and I do not deal well with people telling false stuff about me.

    13. johnnyalstar says:

      WELL WELL!!

    14. Dave Guthrie says:

      I have a question: This might be an odd
      thing to ask but I have proof of a pimp
      and a strip club owner that are making thousands upon thousands on prostitution ,my question is Why does it seem that these pimps are above the law. The Local Vice & Narcotics squad tells me they can’t touch them. They say they bust the prostitutes and they get $100.00 fine and
      are back doing the same thing the next day each one brings in$1000.00 to $2000.00 every day to there pimps plus
      the pimps tape them and sell the tapes over the internet.More $$$$. Can’t yoy stop this. Thanks

    15. Legal Tax Payer says:

      The guy who owns the house next door to me also lives in a house across the street with his new wife.
      He’s renting out the house next door and I don’t know if he’s reporting the rental income to the IRS or not, but I checked the county tax roll and it’s on record he’s taking a $9,920 homestead exemption in a home he is absolutely not living in.
      The IRS seems to add a lot of red tape to reporting tax frauds, but my bet is the county I live in will have no trouble determining that this landlord is a county tax cheat.

    16. IRS doesn't follow up, and doesn't care says:

      I know for a fact of someone that has been cheating on his taxes (owns a business)–so badly that his accountant fired him for writing off his personal vehicles and vacations, and boat accessories as business expenses… He just got another accountant.
      I called the IRS and told them everything (including the information asked for, along with phone numbers of people who knew about this and did his bookkeeping within the business, the accountant that fired him) but they said that they didn’t have the authority to do anything about it. They refused to even take the information. Witnesses were never called.
      And this guy continues to cheat on his taxes. After all, why stop?
      I’d have no problem turning him in… after all, I pay my fair share… I can’t afford the vacations and boats and BMW’s… but he gets away with it and gets a tax break to boot? Pshh!
      I just wish the IRS would “do” something… They seem to have no interest.

    17. Miko Justice says:

      I’m dating my boy friend for over 8 month.
      He has a business actually he is working for his father. The business is located exactly where my boyfriend’s Land is. His father never cared about his son and makes his son work like a slave. My boyfriend been true so much with his dad and step mom, which he had to purchase this land where the business is so that they where not able to lay my boy friend off again. His father owning with this snake of wife and daughter lots of land that was giving by the grandparents, which the father was giving to. The father never had to work he is lazy and anything was giving him what he wanted from his dad. So when they died they had inherited all of the land. My boyfriend works for his dad like a slave. He turned this business 100% around to a positive way and they don’t even thanking him.
      My boyfriend was living on his father’s land in a home that had no water nothing and his father did not care and then under all that they renting this home out to a person that is not related to them at all and on top of that they gave this men the car that my boyfriend sometimes is driving to this men that they don’t know. So he lost this place and I let him stay at my place. We were working on fixing up a building that is located behind the business. So that this can be rent out and so that we have money to do more.
      The father on they other hand is selling all the land and is up to no good. He has never pay his personnel Tax and on the money that he made all the years actually it been 10 years and never paid tax on his personal tax and get away with that and to destroy his son. My boy friend is doing the best he can and we are praying every day that god send justice and nothing happen. I came to USA 15 years ago and I been to Hell and I do what it takes to survive with my children and all the negative influence of the cheating society that getting away with anything. Instate of that someone helping us with Child Support
      and so one. I receive punishment of the other side so what is the Law in general at all.
      Are we fighters against the evil. I’m fighting against the evil and I will do what it takes to get Justice and I will do God’s law and we do have faith and believing in the lord and that he will bless us.
      So I asking you all do you think there is someone out there that cares about the cheaters and if there is please contact me and I will report them and hope that God will understand this that something needs to be happening before this is too late.
      I hope there will be Justice

    18. Mleinda says:

      I actually have a question and I will need more information on. I know of someone who owns a hair stye salon and does make bogus claims on her business to prevent herself from paying taxes. I know this but its all over the counter. I have no paper proof or physical proof. I am not sure If I know her ssn but I do know the company she works for. Where can I go to anomouisly report this to the IRS. I am not in it for the money but I would like to have it reported to maybe they can do an audit to prevent her from doing this more. Thanks Melinda

    19. Melinda says:

      Sorry to clarify my comment more (the computer went ahead and posted before I finished…
      This person is Korean and is now a citizen, her attitude is she does not have to pay for taxes because she is a minority, she owns a small business. I have known her for a long time and I do know she has changed her name because she had creditors after her previous name.
      I am a minority and wanting to start a small business myself, but cannot believe that someone can be so ruthless to lie about her business and still get away with it. I would like to know where I can report this business, or at least get it audited. Thanks Melinda

    20. Michael Rivera says:

      I know for a fact that someone is cheating on their taxes but all I have is there full name, they have done this for 2 years and got about 12,000 from the government i would like for you to follow up with me just e-mail and i will give you all the information i got thank you.

    21. shawn brandom says:

      are you all aware of the massive tax fraud in the stock market called naked short selling and counterfeit shares?
      apparently hedge funds and broker dealers short stock of companies to the point of them being bankrupt and then not filing on the profits made.

      could be billions of dollars not taxed.

    22. Thieves vs Judas says:

      First, never count on receiving a reward. The IRS often fails to investigate the claim and if you file for a reward, another form is required that is sent to a different dept. The rewards dept cannot talk to the dept to whith which the initial report was made. In short, you must submit all the information and wait and wait and wait, while they deliberate and fondle the paperwork.

      Regarding being a Judas, I pay all of my taxes. This does not mean that I support what they are used for, how they are apportioned, specials bills or any of the other garbage. If you are not paying your legal taxes, that is ..a thief (let’s just assume any samll cash business or extremely wealthly indidual in the US), why should I pay your tax share also. The lowliest private in Iraq is paying his taxes on his dieing wage and if he has family, they are probably on welfare in the states.

      Shame on you for cheating on your taxes. While getting the IRS to do this aspect of their job is like pulling teeth, If you cheat and I find you, I guarantee that I will report you.

      PS. Trying to report fraud to the IRS is easy compared to reporting mortgage fraud to the FBI or US Attorney or various state agencies. According to the FBI local office Agent in Charge, the policy 6 months ago was that mortgage fraud is not a priority.
      So basically, I will continue to report you thieves, but you do not have to fret because the US government is at work.

    23. Margaret Mulllins says:

      The people accross the street own a bed and bkfst/ bought it about 8 mos ago, have very little means of income but are trying to buy up every available house on the block, drive a cadillac SUV, a BWM convertible, among othrs, seem to have endless funds, but not much income. If you wish more info please email me.

    24. zack says:

      I know someone who cheats on taxes. He is the dude that was beat up by Bruce Willis. He makes 5000 a month as a celebrity photographer and doesn’t pay taxes!

    25. Sicken Tired says:

      I work at a wholesale store where if you have a business and a valid state resale number you can legally purchase items without paying taxes on them if you are going to sell them at your place of business. The thing is that A LOT of the business owners will purchase things like movies, clothing, deodorant, baby diapers, and other personal items under a business name and resale number for a Chinese restaurant for example…As a cashier all I can do is ask if they plan on selling these items at their place of business and most the time they say yes, which I know is a lie because I’ve eaten at some of these restaurants and I can tell you right now deodorant and diapers are NOT on the menu. Anyhow…I was just curious what I can do to turn these fools in without jeopardizing my job. And to be honest I don’t even really care about the reward because it would be impossible for me to have documentation without taking copies of their resale cards that they sign because my job would not allow that. I’m sick and tired of watching these people get away with cheating the government.

    26. pamela henderson says:

      how do i report tax fraud i know someone is claiming children that they dont have custody of

    27. joe says:

      i reported someone not paying proper taxes from their business three years ago, and the IRS did nothing.

    28. Matthew says:

      My wife works with an illegal alien at a very prominent winery in the Napa Valley. The guy is very nice and personable, and I tend to be open towards illegals because I work with many also and see the contribution to Ca. agriculture.
      But my wife told me the other day that this person has a whole bag-full of tricks to insure he gets a huge tax refund every year. I don’t hate this guy or anything…but I’m pissed that I’m actually the person paying the mortgage on his house…because I absolutely pay all my taxes every year. I’m disturbed about how he seemed to think it was funny enough to brag about to people and tell others how to do it themselves…like systemic tax fraud is akin to making a “California stop” at an intersection.
      I don’t want to get involved but I think I want to report this guy. I’d estimate he receives $10-12 thousand every year for the last 5-6 years. Does this seem petty and dickish to anybody? I could definitely get my hands on w-2’s and personal information. Any thought’s anyone?

    29. Ron Jacobs says:

      I work for a company that has approx 250 employes.they only tax us on half our income, and only report half on our w-2
      Exp. I make over $100,000 a year but I am only taxed on $50,000
      they only pay payroll tax on $50,000
      they have been doing this for years
      I am sure it amounts to way more than 2 million

    30. Whistleblower says:

      I know someone that has filed a falsified Tax Return while collecting Welfare in New York City. She file a false return in 2004 and received 1,100.00 Federal Refund and filed a falsified NY State and NY City Return. I am a Federal Employee and have knowledge of this person doing this crime. I heard her discuss it with her Aunt. This seems to be a common practice among this particular family. Claiming children they don’t have. In the state of this economy, the IRS should compare first time refund payments and people who exemptions change suddenly. I will be reporting this person to the Treasury Department Investigations. To include people that are filing under alias to avoid Tax Warrants that are in the system.

    31. 1 says:

      Miko…. heres an idea….. why doesnt your boyfriend stop relying on daddy and go out and man up on his own? Youre just as pathetic as he is.

    32. Report Tax Fraud? says:

      If this tax cheater is also a con artist who has hurt myself and many all her life, wouldn’t you report her? I think I would. She’s clever and will go on robbing people’s money and hearts until someone turns her in. Still, it’s a a decision I must make.

    33. bill says:

      Reporting tax fraud,is a moral duty to all americans who pay their taxes .Especially if you know someone who does not report their rent income from renting out three rooms in an r-1 or other zones.Remember it is the tax payers who bear the burden of all those who cheat,our gov.,and all of us

    34. Lisa says:

      A relative is dating someone who admitted he hasn’t paid or filed taxes in over eight years! In 2008 his stimulus check was held because of all the back monies he owed, so his employer now pays him under the table, so he can also avoid paying child support. I once had him admit to me he’s collecting unemployment AND had filed many bogus insurance claims. Yet my relative still keeps him in her house, and wonders why her kids don’t like the guy. Oh yeah, that and he has offered drugs to her kids too. But she lives in denial…

    35. Leah says:

      My really mean ex-landlord claims the homestead exemption credit falsey. He says his wife lives in his rental under her maiden name. Clearly it is a rental as we lived there for a year. Do I report him to the IRS and local assesor office? He needs to be stopped!

    36. Ann Bates says:

      I personally know of a couple..bought their own cash register to make reciepts, are given livestock or buy cheaply and change #’s or make reciepts (also doing insurance fraud) claim deductions on travel and job expenses..ie when recieving per diem not claimed.they also claim rent, auto expenses. They give away livestock claiming as loss or report it’s died. Given a horse..put the horse down and claim they lost a 5k horse to both IRS and insurance. This has gone of for many years..nice to get a great kickback when actually you owe?

    37. Bembacolora says:

      I have no doubt about reporting the licensed contractor who abandoned the job and left me deeply in debt and hanging from a thread. I didn’t know the IRS pays for information about tax evaders. I need every penny I can get to complete the work on my house.
      I want to report the contractor to as many agencies as possible. He signed a contract with me to build a house. Then he sold the contract to an unlicensed illegal alien laborer for $10,000. The licensed contractor took the $115,000 I paid for materials and labor, then ran off to El Salvador for a few months, leaving a group of men on the construction site to perform the work. The “subcontractor” told me no money had been paid to him by the licensed contractor. I signed the contract in September. The framing was completed by December. All work came to a standstill. I was told the weather would ruin the framing if the roof was left off the structure. He said there was no money for materials or labor to continue.

      I called several contractors to take over the job. They laughed at me. Since no one else would take on the job at that point, I worked with the subcontractor in an attempt to complete the building of the house. The work was shoddy according to expert witnesses, and never completed according to the plans. I purchased building materials, paid laborers, and made numerous trips to the city, Home Depot, Lowes, roofing companies, etc. I sued the contractor and obtained a judgment for $15,000. My legal fees came to $37,000. The house needs $100,000 worth of work to bring it up to the standards on the original plan. There is a full list of defects found through inspection by the experts hired by the attorney, even without destructive testing. This judgment has been registered with the California Contractors Licensing Board. It now appears on his license. I am still angry. Every time I see these people on the street they hug me and say, “May God Bless You.” (Que Dios te bendiga.” This makes me furious. Now, I want to report the contractor and his associates (friends) to govt. agencies: Social Security Administration, Workers Comp., IRS and any others I can find. Their social security numbers are listed on the judgment! Any suggestions?

    38. Tim Mills says:

      I know of a person that has not filed a tax return in mamy , many years and was wondering what I need to do to tur them in ?

    39. Arleen Jones says:

      I wanted to report someone that did a mortgage fraud/therefore led to tax fraud..via/capital gain being Not Claimed..How do I go about this procedure.. 2 Actually 3 paties involved, and the guy says that his tax preparer advised him to do this(whether that is true or not)But it is a long fruitful story the homes are in Nevada, the sold homes were in Wisconsin. He still owns a few homes in Wisconsin..Send me what to do and where to report this..They moved into each others home and say they are paying rent, then they will sell to each other after the capitol gain time runs out

    40. brandy says:

      I want to report someone for “selling” their kids every year at tax time. I have a cousin who has never worked a day in her life. She collects over $900 in foodstamps, gets state medical insurance and disability for one of her children. She has 6 children and she allows other people to claim them for earned income credit for a fee. I want to know how to turn her in and what info I would need to supply. I know some of the people that have claimed the children. I know soc. security numbers and birthdates for the mom and all the children.

    41. Email says:

      I am being ran over i pay almost a thousand dollars in child support my kids dont have nothing to show for it. I’m not able to carry them or even one of my twins. She sells my kids and prosper nothing. But i report it nobody does nothing. I dont wont the irs money some needs to done.She gets an ungodly amount of food stamps. Receives $500 a peice SSI for them.

    42. bonnie moore says:

      Type your comment here. My daughter in law has two children they get food stamps and medicade she worked under the table this years so she didnt pay taxes her younger son has lived with me for last six months occasionaly spending night with her she let her step dad file the kids this year he give her 2000 dollars I dont know how much he got back I know he didnt have the kids like i said I had one of them fore six months how can i report them I know their names and his name but no social sec. number I can get his address this is unfair the welfare is already keeping them up they shouldnt get it from IRS to

    43. DAobserver says:

      This is in response to a comment by “Miko Justice”. I was trying real hard to read your comments but your grammer makes it impossible. I’m just being honest. Before you try to write something in English – learn how to… please…. or no one will ever read anything you write. It’s way too frustrating. (And you probably had something substantial to say – we’ll just never get that far)!

    44. kenneth klemm says:

      I work with someone that is cheating on his taxes.I know this because he is bragging about it.One of the things he is doing is his aunt is in the usa ilegal in the usa she has two kids. so she will give him papers for proof he says it hes kids.
      There are more things he said on hes taxes because this guy is single and not married .He recived 11,000 dollars on his taxes he is about 19 years old. I can only tell you where he works and his name.By you saying you need more than that will stop alot of people from reporting them. Let me know what to do .
      Thank you

    45. kelli perez says:

      Why are people who hire nannies not paying nanny taxes?

    46. Ronald Ray says:

      I believe there is a consparacy with some of my friends committing tax fraud I watch them on web cam and they talk about buying stuff.

    47. jerry t holcomb jr says:

      if i knew of a company that has like 40 ellegal aliens working for them for the past say 8 yrs would i get a reward for turning them in

    48. Ashley says:

      My ex husband was abusive and controlling. He has screwed me over financially from day one. He is a preditor. I wanted a divorce from him so he made it as difficult, financially, as he could. He doesn’t claim his tips as a bartender, I am sick of him getting away with using people. I am turning him in, and he will get what he deserves.

    49. N Wilkerson says:

      I turned in my ex because he wouldn’t pay child support on his “side jobs”. I sent in pics of jobs, dates and addresses. Took two years for the IRS to audit him, but it was worth every minute of my time!! He was fined $13,000 dollars and I am just waiting for my check. Now my kids can benefit.

    50. Richard Blaine says:

      I know a man that has been collecting funds(charity) for a large number of years. The only thing i do not know is his social security # but i know everything else you have requested in your e-mail. what do i need to do to proceed with this? Thank you. He been making thousands of dollars and not reporting anything to the I.R.S.

    Leave a Reply

    Your email address will not be published. Required fields are marked *