Tax Fraud
tax.idaho.gov/fraud
How to recognize tax evasion or fraud
Fraud is the intentional misrepresentation or concealment of information in order to deceive or mislead.
This includes individuals, businesses, or tax preparers who:
- File false returns or refuse to file returns
- Don't get necessary permits
- Collect tax but don't report and pay it
- Don't charge tax when it's required
- Don't report all income
- Deal in cash and don't report it
- Treat employees as contract labor
- Falsely overstate deductions or expenses
Warning signs may include:
- Keeping two sets of accounting books
- Concealing assets, sometimes asking others to help in doing so
- Claiming fictitious dependents
- Claiming to be a resident of another state (while appearing to be an Idaho resident)
- Businesses that keep poor records and/or repeatedly open and close their business
- Purposeful destruction of records
- Spending much more money than is typical for their circumstances
- Engaging in illegal activities
