Aware of possible tax fraud?
Examples of Tax Fraud
If you report IRS tax evasion or income tax fraud relating to a financial transaction, you may be entitled to a whistleblower reward under the IRS whistleblower reward program, as outlined in this website.
The IRS is not likely to catch tax fraud when it is disguised through complex financial transactions. Therefore, the IRS is offering large monetary rewards if you report financial fraud used to underpay or evade taxes. Some examples of reporting financial fraud for a reward include:
- Balance sheet fraud
- Hiding assets off-shore or overseas
- Using shell banks in tax haven countries
- Hiding contingent liabilities
- Disguising debt, misstating debt, or disguising loans that should be classified as debt
- Creating fake capital losses by back dating trade tickets
- Selling fake capital losses to those needing deductions
- Using special purpose vehicles (SPVs) to hide liabilities
- Keeping two or more sets of books
- Creating or using “shell” banks
- Overstating assets or understating liabilities
- Inflating earnings
- Booking ordinary expenses as capital expenses
If you know of a financial transaction fraud resulting in underpaying federal income taxes (tax fraud), fill out our tax fraud questionnaire.