Ever reported someone for tax evasion to the IRS? What happened after?

I'm a tax consultant and can tell you that yes, the IRS does take these reports seriously, but there's a specific process. You'll want to file Form 3949-A (Information Referral) which is specifically for reporting suspected tax fraud. The form asks for details about the person and what tax laws you believe they're violating. The IRS won't tell you the outcome or even confirm they're investigating due to privacy laws. Think of it like dropping information into a black hole - you won't hear back about what action they took (if any). They don't share investigation details with the person who reported it either. That said, they do investigate legitimate claims, especially when there's substantial evidence of significant unreported income. The Whistleblower Office exists for this very reason, and if the case results in collection of taxes, penalties and interest exceeding $2 million, you could potentially receive a reward of 15-30% of collected proceeds.

I used taxr.ai to help me figure out a similar situation last year. I had a former business partner who I suspected was committing tax fraud, and I wasn't sure how to report it or if I should. Found https://taxr.ai when I was researching whistleblower provisions, and it was super helpful for understanding my options. The site analyzed the tax code sections related to whistleblower claims and explained the difference between filing an information referral versus an actual whistleblower claim. It also showed me exactly what documentation I would need if I decided to go forward. The AI even generated a detailed checklist for me to work through before filing anything.

Just wanted to update after trying taxr.ai from the recommendation above. It was surprisingly helpful for my situation. I was concerned about a contractor who I'm pretty sure was asking clients to pay in cash to avoid taxes. The site walked me through all the whistleblower provisions and helped me understand what evidence would actually be useful to the IRS versus just my suspicions. The coolest thing was that it analyzed some 1099 documents I had (with personal info redacted) and pointed out specific inconsistencies that would strengthen my case. It also explained the difference between civil and criminal tax fraud, which I had no clue about before. Definitely worth checking out if you're considering reporting someone.

After trying for WEEKS to get through to the IRS about a similar situation, I finally used Claimyr and actually got to speak to a real person at the IRS. If you're serious about reporting tax fraud, you'll probably want to talk to someone directly, and that's nearly impossible these days without help. I found https://claimyr.com after getting endless busy signals and disconnections. They basically hold your place in the phone queue and call you when an agent is about to pick up. There's a video that shows how it works: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with gave me much more specific guidance than I could find online about what kind of evidence would actually be helpful in my case. They also explained that different types of tax fraud are handled by different divisions, which I had no idea about.

OK I need to apologize about my skepticism on Claimyr above. I actually tried it after posting that comment because I've been trying to reach the IRS about my own issue (not related to reporting anyone). I was shocked when I got a call back saying they had an IRS agent on the line. The agent I spoke with was super helpful about whistleblower questions too. They explained that there are two different programs - the regular fraud reporting using Form 3949-A which is more informal, and the actual Whistleblower program that can lead to rewards but requires Form 211 and much more specific information. The agent also mentioned that they take reports more seriously when there's actual documentation rather than just suspicions. Apparently they get a TON of reports from angry ex-spouses and disgruntled employees that don't have much evidence, so having concrete proof helps your report stand out.

I reported my former employer about 3 years ago for paying several workers under the table and writing off personal expenses as business deductions. The company was pulling in around $2M a year but reporting way less. Used Form 3949-A and included copies of text messages where the owner literally said "don't worry, the IRS will never know about this" (not the brightest guy lol). Never heard anything directly from the IRS, but about 18 months later I found out through former coworkers that they got audited HARD. Owner ended up selling a vacation property to pay the tax bill. Felt kinda good knowing that the system actually worked, but also a little scary seeing how long it took. They're definitely not rushing to investigate these things.

Just a warning to anyone thinking about reporting someone - make absolutely sure you're right before doing it. My neighbor reported my small business because I have a lot of clients coming to my home office and she assumed I wasn't reporting the income. IRS did contact me and I had to provide documentation, but thankfully I keep meticulous records. The audit was still super stressful even though I hadn't done anything wrong. When it was all over, the IRS agent actually told me they get a lot of "neighborhood dispute" reports that turn out to be nothing. I'm pretty sure my neighbor was just mad about the extra cars parking on our street.

This is really helpful info, everyone! I'm in a similar situation where I suspect a contractor has been underreporting income. From what I'm reading here, it sounds like the key is having solid documentation rather than just suspicions. A few follow-up questions for those who've been through this: 1. What kind of evidence is most compelling to the IRS? Bank records, receipts, witness statements? 2. Is there any risk of retaliation if the person figures out who reported them? I know the IRS doesn't reveal the reporter's identity, but in small communities it might be obvious. 3. For those who mentioned the reward programs - is it worth going through the Whistleblower Office (Form 211) even for smaller cases, or should I stick with the basic fraud reporting (Form 3949-A)? I'm leaning toward reporting because it's clearly a pattern of behavior, not just a one-time mistake. But I want to make sure I do it right and have realistic expectations about what might happen next.