New way to report fraud
FTB has a new, online, self-service option for reporting suspected income tax fraud. The online Fraud Referral form gives honest taxpayers a simple way to provide information about the fraudulent activities of others, at their convenience.
Honest taxpayers pay more than their fair share when dishonest taxpayers shirk their legal tax responsibility. Disreputable tax practitioners who advise their clients on illegal ways to evade or avoid tax are equally responsible for the tax gap, and give the profession a bad name. They obtain an unfair business advantage over law-abiding tax professionals, by neglecting to pay their own taxes, as well as by soliciting clients with promises of unwarranted tax savings.
Taxpayers and practitioners have provided thousands of tips on the fraudulent activities of individuals, businesses, and tax practitioners who are contributing to the tax gap. Tips are most valuable when they provide all the information necessary for investigating a case. The online form assigns a referral number to the tip that the informant can include when sending in any supporting records. This helps associate the supporting records with the referral. The referral number also allows informants to provide additional information later, to update the original tip.
While informants may still use our hotline, mail, or fax options, we believe they will find the online fraud referral form quick and easy to use. To access the form, click on the Contact Us tab, and select the link for Reporting Income Tax Fraud.