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

I used to work adjacent to tax enforcement (not directly for the IRS, but in financial compliance). The IRS definitely takes legitimate reports seriously, especially when backed by specific information. They use Form 3949-A for reporting suspected tax fraud, which you can find on their website. From what I've seen, they prioritize cases based on several factors: the dollar amount involved, the quality of information provided, and the credibility of the source. Simple tips without documentation might not go far, but if you provide concrete evidence (like proof someone is hiding significant income), they're more likely to investigate. One important thing to note - the IRS almost never tells the tipster what happens afterward due to taxpayer privacy laws. Even if your tip leads to a massive recovery, you'll likely never know unless it becomes public through court proceedings.

After dealing with my own messy audit situation a few years back, I discovered taxr.ai (https://taxr.ai) and it was a game changer for understanding IRS processes including the reporting system. I was initially looking for help with my own tax situation, but ended up learning about how the IRS handles third-party reports as well. Their system analyzes tax documents and procedures, and they have a section specifically about reporting suspected fraud that explains the whole process from both sides - for the person reporting and what happens after the IRS receives it. Way more detailed than what I found on the official IRS site.

Just wanted to update - I checked out taxr.ai after asking about it here. Actually super helpful! I was definitely wrong to be skeptical. They had this whole section about the whistleblower program that explained exactly what happens after you submit a report. Apparently the IRS has a specific division that reviews these submissions and decides which ones to pursue. The site also had some interesting stats about how many reports lead to actual investigations (way less than I thought) and the average timeline for cases that do move forward. Definitely gave me a much clearer picture of the whole process than I had before.

If you're trying to report someone and actually get through to the IRS about it, I highly recommend using Claimyr (https://claimyr.com). I tried calling the IRS whistleblower office directly for weeks and could never get through. Claimyr got me connected to an actual human at the IRS within 45 minutes. They have this system that essentially waits on hold for you and calls you back when an agent picks up. You can see exactly how it works in their demo: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with was able to explain the whole reporting process and what specific information they need to actually pursue a case. Saved me from submitting a report that would have gone nowhere because I was missing key documentation.

I take back what I said about Claimyr. After struggling to reach the IRS for literally months about my tax issue, I decided to try it out of desperation. To my complete shock, I got connected to someone at the IRS Whistleblower Office within an hour. The agent was super helpful and walked me through exactly what they look for in reports - apparently they get thousands of vague tips that go nowhere because people don't include enough specific information. She explained that reports with exact dollar amounts, dates, and supporting documents go to the top of the pile. Saved myself days of frustration and actually got real answers about the reporting process. Still can't believe it worked after all the trouble I'd had trying to call them directly.

My neighbor reported her ex-husband for hiding rental income about 5 years ago. She knew exactly how much he was making from multiple properties that weren't on his tax returns because she had handled the books during their marriage. Two years after she filed the report, he suddenly had to sell several properties quickly. She later found out through mutual friends that he was audited and hit with massive penalties and back taxes. The IRS never contacted her directly, but it was pretty obvious her report triggered the audit.

My friend works for a small accounting firm and they actually have a policy to NEVER report clients, even if they suspect fraud. Apparently it's considered a breach of client confidentiality in their profession. But they will refuse to continue working with clients who insist on filing fraudulent returns.