IRS Form 3949-A walkthrough (Information Referral)

[@teachmepersonalfinance]

Please feel free to check out our article, where we've written step by step instructions to help you walk through this tax form! www.teachmepersonalfinance.com/irs-form-3949-a-instructions/

[@noname-tj3rp]

What is the % that the IRS end up looking into? Would say 50% of submissions get looked into

[@teachmepersonalfinance]

I do not know the exact percentage of submissions that the IRS looks into, but I imagine that all submissions are evaluated to some degree or another. Here is a link to the latest IRS publication (that I could find), with related statistics: www.irs.gov/pub/irs-pdf/p55b.pdf

[@carissa5927]

Thank you for sharing. I need some guidance 😊

[@teachmepersonalfinance]

Of course! I'm glad to be of help!

[@carissa5927]

Can I email you? 😊

[@saraharce8213]

What if someone took money for 15 years as “contribution” instead of rent and claimed zero on their taxes? We shared the house with them. We’re related (if it matters). They took around $15k a year from us.

[@teachmepersonalfinance]

You could report them using this form since the IRS doesn't recognize 'contribution in lieu of rental income.' In Section B (Describe the Alleged Violation of Tax Law), you could check the box for unreported income.

[@saraharce8213]

What if it was the same tax preparer doing both our taxes? How far back would the IRS go? The property was put into a trust recently in 2021. If they are found guilty of not reporting income, what might happen?

[@teachmepersonalfinance]

@@saraharce8213 I cannot attest as to what will happen, but the IRS can pursue a range of civil and criminal penalties. For filed tax returns, the statute of limitations can range, depending on several factors. This could take the form of fines and penalty payments for underreporting income, all the way to criminal prosecution for tax evasion, if the IRS determines that they committed fraud to hide their income. Generally, there is a 3-year statute of limitations to assess tax, and there is a 10-year collection period. However, many factors can impact those limits (extend them). For cases involving tax fraud, there is no statute of limitations for civil cases. I can't really say whether things would be different if you used two different tax preparers. I'm operating under the assumption that the tax preparer is doing their due diligence, and is not complicit in hiding any income.

[@saraharce8213]

Wow thank you for sharing. Excellent advice.

[@kasiar1540]

Does the IRS facilitate a refund in the case the business has charged you unfairly?

[@teachmepersonalfinance]

Not necessarily. You may need to discuss this more closely with the IRS to see what options are available to you.

[@noname-tj3rp]

What if you are reporting a group of people? I need to report a touring band that pocketed 30k cash

[@teachmepersonalfinance]

You may need to report the band as a business, then list individual members in the comments section. You can also walk through the IRS 3949-A online tool to see if you should file a different form instead: apps.irs.gov/app/digital-mailroom/referrals/

[@samehgaber4046]

Which email of IRS that I will SEND this report

[@teachmepersonalfinance]

The instructions tell you not to email this to the IRS. Instead, mail it to the following address: Internal Revenue Service PO Box 3801 Ogden, UT 84409

[@allenshiloh]

wow. thanks

[@ChristinaC-xi4nz]

What about self employed hiding money from child support

[@teachmepersonalfinance]

This tax form is to report suspected tax crimes to the IRS. With regards to child support, that's usually a state-managed issue, so the appropriate place to report child support evasion would be by reporting it to the appropriate child support office, either at the state or local level. From there, states usually have a wide variety of options, including (not in all states), reporting to the Treasury Department, under the Treasury Offset Program, or TOP. At that point, the Treasury Department may use federal resources to garnish money that would otherwise go to the person. For example, the IRS will garnish tax refunds under this program. Feel free to read more here: www.teachmepersonalfinance.com/tax-topic-203/

[@ChristinaC-xi4nz]

@@teachmepersonalfinance if he works under the table

[@tyshiddejuremanbey1313]

Your Awsome!!!