The Internal Revenue Service has introduced a new centralized online system to help taxpayers report tax fraud and other illegal activities more easily.

The move comes as older reporting systems face heavy pressure due to a sharp rise in fraud and scam complaints in recent years. The agency said the upgraded platform will help it use incoming data more effectively and respond faster.

New System Simplifies Fraud Reporting

Earlier, taxpayers often had to visit multiple web pages or complete different forms depending on the type of fraud they wanted to report. The IRS said this complicated structure discouraged reporting and slowed the review of submitted tips.

The newly launched portal brings all reporting options into one place. It allows users to submit detailed information about suspected fraud, identity theft, hidden income, or other illegal financial actions through a single, user-friendly interface.

IRS Chief Executive Officer Frank J. Bisignano said the changes will fix long-standing issues. “Improvements to the IRS fraud reporting system make reporting suspected wrongdoing easier and simpler and will address historic challenges that have prevented the IRS from making maximum use of the referrals it receives.”

The IRS also assured taxpayers that all submissions will remain confidential. It added that there are no penalties for those who report concerns in good faith.

How to Report Suspected Tax Fraud

Taxpayers who want to report fraud can visit the IRS Whistleblower Office page on the agency’s official website. There, they can complete an online form detailing the allegation and upload supporting documents.

According to IRS guidance, a complete submission should include:

• The name, address, and taxpayer identification number (if known) of the individual or organization being reported

• A clear explanation of the suspected violation

• Any documents that support the claim

• Details on how and when the information was obtained

• An explanation of the reporter’s connection, if any, to the accused party, both past and present

• The reporter’s contact information

Financial Rewards for Whistleblowers

The IRS Whistleblower Office may offer financial rewards if the information provided leads to the recovery of significant unpaid taxes. Under current law, qualified whistleblowers can receive between 15 percent and 30 percent of the amount collected in certain cases.

What to Do If You Are Targeted by a Scam

If a taxpayer believes they are being targeted by a tax scam, they should immediately stop communicating with the suspected scammer. They should not send money or share personal information. It is also important to inform their bank or financial institution without delay.

If someone thinks their identity has been stolen, they should visit IdentityTheft.gov, a government website linked by the IRS, to begin the recovery process.

Overall, the new IRS portal aims to make fraud reporting faster, simpler, and more effective, while encouraging taxpayers to take an active role in stopping illegal tax activities.