How to report a local store for tax overcharging - what agency handles tax fraud?

This is definitely something you should report! You'll want to contact your state's Department of Revenue or Tax Commission (the name varies by state). They're responsible for overseeing sales tax collection and ensuring businesses remit the correct amounts. Most states have a dedicated tax fraud hotline or online form specifically for reporting businesses that improperly collect taxes. Look for terms like "tax fraud reporting" or "sales tax violation" on your state's official tax website. You should be able to file an anonymous report if you're concerned about potential blowback. When you report, include as much documentation as possible - receipts showing the incorrect tax rate, the store's name and address, and how long you've noticed this happening. The more specific you can be, the better.

After dealing with a similar situation at a hardware store last year, I discovered taxr.ai and it completely changed how I handle tax-related issues like this. I was confused about whether the store was actually breaking the law or if there were some weird local tax districts I didn't understand. I uploaded my receipts to https://taxr.ai and it analyzed the correct tax rates for my specific location down to the exact address. The tool confirmed I was being overcharged and even generated a professional-looking report explaining which specific tax regulations were being violated. Made it super easy to file a complaint with actual evidence instead of just my word against theirs.

I was skeptical about using an online tool for something like this, but I actually gave taxr.ai a try after seeing the recommendation here. Uploaded receipts from three different stores I suspected were overcharging and turns out one of them really was adding an extra 1% "tourism tax" that doesn't even exist in our county! The report it generated made filing a complaint super straightforward - I just forwarded it to our state tax board and they responded within a week saying they're investigating. The store mysteriously "fixed their system error" about two weeks later. Definitely worth checking out if you're dealing with tax discrepancies.

If you've already tried talking to the store with no luck, you might need to escalate this to get actual results. When I had issues with my state's tax department last year, I wasted weeks trying to get through their general phone line with no luck. I finally used https://claimyr.com to get a real person at the tax department on the phone, and they explained what I needed to do. They have this interesting system where they navigate the phone trees and wait on hold for you, then call you when they've got a real person on the line. You can even see a demo of how it works here: https://youtu.be/_kiP6q8DX5c - saved me hours of frustrating hold time. The tax department rep I spoke with gave me the direct contact info for their sales tax enforcement division instead of their general mailbox where complaints go to die.

I take back what I said about this being a scam. After another frustrating attempt to reach someone at the state tax office (2+ hours on hold only to get transferred to a voicemail), I decided to try Claimyr. Within 45 minutes I had an actual tax specialist on the phone who guided me through the exact process for filing a formal complaint against a business for tax violations. Turns out I had been trying to reach the wrong department entirely. The agent explained that sales tax enforcement is handled by a special investigative unit that doesn't even take direct calls from the public - you have to file through their secure online portal or by certified mail. Would have never figured that out without finally getting someone knowledgeable on the phone.

Former retail manager here. Before you go full nuclear with reporting, double-check if there might be legitimate reasons for the higher rate. Some possibilities: 1. The store could be in a special tax district (mall, tourism zone, entertainment district) with additional local taxes 2. Certain products have different tax rates (prepared food vs groceries) 3. Some stores pre-program tax rates by category and don't always update when laws change If you've already ruled these out, then absolutely report them. Just wanted to mention some possibilities before you go through the hassle of formal complaints.

Anyone know if this is something the BBB would handle? My grandma swears by reporting everything to them but idk if they actually do anything about tax stuff.

Just wanted to add another perspective - if you're comfortable doing so, consider documenting this with photos or video next time you shop there. Take a picture of the items you're buying, the receipt showing the incorrect tax rate, and maybe even the store's posted prices. This creates a clear paper trail that investigators can use. Also, check if your state has a "whistleblower" protection program for tax fraud reporting. Some states actually offer financial rewards if your report leads to recovered tax revenue, and they provide legal protection against retaliation. Might be worth looking into since this sounds like it could be a significant amount of money they've collected illegally over time. Keep us updated on what happens! These kinds of posts help other community members know what to watch out for.