4/19/2023 0 Comments 3949a form27 percent could not be processed because they didn’t provide sufficient details (not surprising since the form asks for things like the social security number and birth date of the person you are reporting). TIGTA studied a sampling of 530 whistleblower forms 3949-A and identified some serious problems: And many are also using the form for something other than its intended purpose. But according to TIGTA, Form 3949-A is too complicated for most taxpayers to be able to complete thoroughly and accurately. The best way to report IRS problems involving fraud and other tax law violations is by completing and filing IRS Whistleblower Form 3949-A. Of course most of the inquiries I see come from the estranged spouse or the “friend” seeking revenge. Others are mistakenly considered unworkable and retained for 90 days and then destroyed.Maybe it’s because of the recent unprecedented IRS whistleblower payout, but people seem to be eager to turn others in for tax law violations these days. The forms are often used for other purposes ( e.g., claims by victims of identity theft).ġ2. Ineffective routing procedures and oversight have allowed Forms 3949-A to be mis-routed to the wrong functions. A lack of quality review resulted in referrals being destroyed.ġ1. Many referrals do not meet any criteria under which the IRS could or would be able to take action(s).ġ0. The IRS routes identity theft referrals received on a Form 3949‑A as regular correspondence, which delays actions from being taken on identity theft cases.ĩ. Because Form 3949‑A lacks specificity, taxpayers do not always provide the IRS with sufficient information for the IRS to take action.Ĩ. As a result, individuals often use Form 3949‑A for purposes other than reporting suspected tax fraud or tax law violations.ħ. Instructions on Form 3949‑A do not explain what types of fraud and tax law violations to report using this form. Reporting guidelines provided to taxpayers and employees are confusing and inconsistent.Ħ. A lack of oversight and effective procedures has resulted in workable Forms 3949‑A, including identity theft claims, being destroyed without any acknowledgement of receipt to the taxpayer.ĥ. This creates a burden on both the individuals and tax administration.Ĥ. Reporting guidelines provided to taxpayers and employees are confusing and inconsistent and cause individuals to use Forms 3949‑A for other than its intended purpose. About 3,000 Forms 3949‑A used to report identity theft were destroyed due to a lack of procedures on how to process these claims. The IRS website for reporting fraud was visited 501,218 times in Fiscal Year 2011, and during that year 116,307 individuals submitted a Form 3949‑A, Information Referral, to the IRS.Ģ. Here are twelve highlights directly from the report:ġ. After it was learned that thousands of identity theft ‘Information Referrals’ reported on IRS Form 3949‑A were not being processed the Treasury Secretary General for Tax Administration ( TIGTA) investigated and published a report ( #6) essentially stating that the “ process for individuals to report suspected tax law violations is not efficient or effective.” It seems to in fact have lead to identity theft victims being ignored.īasically the problem as far as I can tell is that IRS Form 3439-A should NOT be used for both blowing the whistle on a tax cheat and also as a means for identity theft victims to report their status to the IRS.
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