How to Report Tax Fraud in Idaho

Tax fraud affects everyone in Idaho, not just the person committing the fraudulent activity, because it cheats the state out of money it needs to operate hospitals, schools and other services. Less revenue also means the state may need to increase tax rates, which impacts those who actually file their taxes honestly. If you know of anyone committing tax fraud, such as someone not reporting all of their income to the U.S. Internal Revenue Service or lying about dependents on their Idaho state tax return, notify the authorities immediately.

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  Call or write to the Idaho State Tax Commission if you know of someone who's lying on their state tax forms for their personal or business taxes. The specific department varies depending on the case. A commission representative can direct your information to the appropriate department. The commission can be reached toll-free at 800-972-7660 or, if you are calling from the Boise area, 208-334-7660. If you would rather write, address your letter to the Idaho State Tax Commission, PO Box 36, Boise ID 83722-0410.

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  Contact the U.S. Internal Revenue Service if you know of an Idaho resident committing tax fraud on their federal tax returns. Download IRS Form 3949-A (see Resources) and complete it with as much information about the fraudulent activity as you can, such as the person's name, address and suspected violations. Example violations include unreported income and false deductions. Mail the form to the Internal Revenue Service, Fresno, CA 93888

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  Dial the Federal Trade Commission's identity theft hotline if someone is using your identity or Social Security number on their Idaho state tax documents or on their federal tax documents. The FTC's hotline is 877-438-4338.

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  Report to the State of Idaho Department of Labor if you suspect someone of unemployment benefits fraud. Such fraud directly drives up the taxes on Idaho's businesses, warns the department. The department asks whistleblowers to fill out the department's online unemployment insurance benefits fraud form (see Resources).

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  Alert the state's office of the attorney general if you're aware of fraud or abusive practices by tax preparers, accountants or tax filing businesses in the state. This includes improper billing, corruption and deceptive practices. Call the office's consumer protection division toll-free at 800-432-3545 or, if you're within Boise, 208-334-2424.