How Do You Report Someone for Tax Evasion to the IRS?

To report someone for tax evasion to the IRS, file Form 3949-A if you just want to pass along a tip, or Form 211 if you want to be considered for a financial reward. Both can be submitted online through the IRS website or mailed in. The more identifying information and documentation you include, the more likely the IRS is to act on what you send.

What to Gather Before You File

A vague hunch will not trigger an investigation. The IRS needs enough detail to match your tip against real tax records and decide whether to open a case. Before you fill out anything, pull together as much of the following as you can:

Identifying details. The person’s or business’s full legal name, address, and Social Security Number or Employer Identification Number. More identifiers make it easier for the IRS to locate the right taxpayer.
The specific conduct. What you believe the person is doing: keeping a second set of books, hiding cash income, claiming fake dependents, inflating business deductions, or failing to file at all.
Tax years involved. “2021 through 2024” is far more useful than “for years.”
Supporting documents. Bank statements, emails, contracts, internal ledgers, or anything else that backs up the claim. These must have been obtained legally.

You don’t need every piece to file. But tips that amount to “my neighbor seems to live beyond their means” rarely go anywhere.

Which Form to Use

Form 3949-A: A Tip With No Reward

Form 3949-A, titled Information Referral, is the standard form for reporting suspected tax law violations by an individual or business.¹ You can complete and submit it online through the IRS website, or print and mail it to: Internal Revenue Service, PO Box 3801, Ogden, UT 84409.² Filing this form does not make you eligible for a financial reward. It simply puts the IRS on notice.

The IRS accepts these reports confidentially, meaning you give your identity to the IRS but it is not shared with the person you’re reporting.³ You can also submit the report entirely anonymously, though that limits the IRS’s ability to come back to you for clarification.

Form 211: A Tip With a Reward Claim

If you want to be considered for an award, file Form 211, Application for Award for Original Information, with the IRS Whistleblower Office.⁴ As of December 2025, the Whistleblower Office accepts Form 211 electronically through a new digital portal, and mail submission remains an option.⁵ Include a detailed written description of the alleged noncompliance, explain how you learned about it, and attach copies of any supporting evidence.

Unlike Form 3949-A, you cannot file Form 211 anonymously. The Whistleblower Office has to know who you are so it can evaluate your claim and eventually pay you. The IRS will protect your identity to the fullest extent the law permits. In rare situations where you’re an essential witness in a judicial proceeding, disclosure may become unavoidable, and the IRS will attempt to notify you first.⁶

What the Reward Actually Pays

The IRS runs two reward tracks under Section 7623 of the Internal Revenue Code, and which one applies depends on the size of the case.⁷

The larger program, under Section 7623(b), covers cases where the taxes, penalties, and interest in dispute exceed $2 million. If the target is an individual, that person’s gross income must also exceed $200,000 in at least one of the tax years at issue. When both thresholds are met and the IRS collects, the award is mandatory: between 15% and 30% of the total proceeds collected, with the exact percentage set by the Whistleblower Office based on how much your information contributed.

Cases below those thresholds fall under Section 7623(a). The IRS applies the same 15% to 30% framework when a whistleblower’s information substantially contributed to the collection, but the program is entirely discretionary.⁶ The IRS is not legally required to pay anything.

One detail that surprises most whistleblowers: federal budget sequestration automatically shaves a percentage off every award. The fiscal year 2025 rate was 5.7%, and the rate is recalculated annually.⁸

Who Cannot Collect a Reward

Some people are barred from receiving any award, no matter how strong their information:⁹

Current or former Treasury Department employees who obtained the information while working there.
Other federal employees who learned the information through their official duties.
Anyone who was legally required to disclose the information, or legally prohibited from disclosing it.
Federal contractors who gained access to the information through a government contract.

Passing the information through an eligible friend does not fix the problem. If a claim is based on information originally obtained by someone in an excluded category, the Whistleblower Office treats the claim as if the ineligible person filed it and rejects it.⁶

How Long It Takes and Why You Won’t Hear Anything

No award is paid until the taxpayer has exhausted all appeal rights and the IRS has actually collected the money. That sequence — audit, assessment, appeals, possible litigation, then collection — stretches out for years. Whistleblower Office fiscal year 2024 data shows an average of roughly 10 years from claim receipt to award payment for Section 7623(a) claims, and nearly 11 years for Section 7623(b) claims.

During that whole period, federal law prohibits the IRS from telling you what is happening. Section 6103 of the Internal Revenue Code bars disclosure of taxpayer return information, and that covers updates about audits, investigations, or enforcement actions tied to the person you reported.¹⁰ You file, and then you hear very little for a very long time.

Protection If You’re Reporting Your Employer

Federal law specifically prohibits retaliation against an employee who reports tax evasion. Your employer cannot fire, demote, suspend, threaten, or harass you for providing information to the IRS, testifying in a tax investigation, or otherwise assisting in enforcement.⁷

If retaliation happens, you have 180 days from the violation to file a complaint with the Secretary of Labor. If the Department of Labor has not issued a final decision within 180 days and you acted in good faith, you can bring a lawsuit in federal district court with the right to a jury trial. A successful retaliation claim can win reinstatement with full seniority, double back pay plus lost benefits with interest, and compensation for special damages including litigation costs and attorney fees.¹¹ These protections cannot be waived by an employment agreement, and no predispute arbitration clause can force a retaliation claim out of court.

If the Evasion Involves State Taxes

Federal forms cover federal taxes only. If someone is evading state income or sales taxes, contact your state’s Department of Revenue or equivalent agency directly. Most states run their own fraud tip lines and reporting forms. A handful have adopted whistleblower reward programs modeled on the federal system, but coverage and award structures vary. Check your state tax agency’s website for the specific process and whether a financial incentive exists.

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Internal Revenue Service. About Form 3949-A, Information Referral
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Internal Revenue Service. Form 3949-A, Information Referral
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Internal Revenue Service. Report Fraud
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Internal Revenue Service. Submit a Whistleblower Claim for Award
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Internal Revenue Service. Whistleblower Office Announces New Digital Form 211
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Internal Revenue Service. 25.2.2 Whistleblower Awards
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Office of the Law Revision Counsel. 26 USC 7623 – Expenses of Detection of Underpayments and Fraud, Etc.
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Internal Revenue Service. FY25 Sequestration Rate for Whistleblower Awards
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eCFR. 26 CFR 301.7623-1 – General Rules, Submitting Information
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Office of the Law Revision Counsel. 26 USC 6103 – Confidentiality and Disclosure of Returns and Return Information
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Office of the Law Revision Counsel. 26 U.S. Code 7623 – Expenses of Detection of Underpayments and Fraud, Etc.