Anonymous
Anonymous asked in Business & FinanceTaxesUnited States · 1 month ago

Can you get sued for reporting someone to IRS?

Can you get sued for reporting someone to IRS if you are just suspecting but not entirely sure?

Update:

Can I get sued if I specifically say on the letter that I'm just suspecting and it's up to them to decide?

14 Answers

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  • 1 month ago

    They won't even know your NAME if you report only to the IRS.

    While people CAN sue without cause, the minimum requirement is identifying you as the person they are trying to sue.

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  • 1 month ago

    You cannot be held liable for telling the truth. As long as you don't make false statements you would be fine. 

    Even if you made some outlandish statement like, "my neighbor has a nice car so he must cheat on his taxes," that would not cause any harm because the IRS would not do anything they couldn't otherwise do on their own.

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  • 1 month ago

    By whom, the person you reported?  If there is anything false in your statement..."I suspect they're not reporting income" when in fact they are...I suppose that could be actionable...but I sincerely doubt it.  

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  • 1 month ago

    You don't get sued, but the IRS does take a closer look at the one reporting someone, usually because THEY have something to hide as well. Prepare to be audited.

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  • 1 month ago

    You can get sued for anything. Whether or not any suit would be successful depends on your motivation and if you cause any damage. In the case of IRS informants, their identity is not disclosed but in some cases it might be obvious who the person was.

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  • danxp2
    Lv 6
    1 month ago

    Reporting suspected fraud to the IRS is not a civil or criminal offense. 

    The only way it could become a civil or criminal case is if you are making maliciously false statements. You know they are not fraudulent but are reporting to the IRS to try and damage them out of spite (or spite adjacent) reasons.

    It would be a crime to threaten to report someone to the IRS, as intimidation, extortion, and blackmailing, are still crimes. However, actually reporting suspected fraud is not a crime. 

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  • Anonymous
    1 month ago

    Or they might just audit you for the next 10 years.

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  • 1 month ago

    The IRS won't sue you for filing the report as long as what you say in the report is truthful to the best of your knowledge, but they might not investigate the person you reported if you don't have any hard evidence against them. They would just file your report away and never look at it again unless there are numerous other reports accusing the same person of the similar activity.

    The person you are reporting could sue you, because anyone can sue anyone for anything. But Its highly unlikely they would do so, because IRS reports are anonymous and they would have no way of knowing or proving that you were the person who reported them unless you told them. And if they did find out it was you and try to sue you, they would lose the case because its not wrong to report suspected tax fraud. In fact, you could likely counter-sue them to force them to pay your legal fees and you'd win your counter-suit because of the frivolous nature of their lawsuit.

    That being said, the IRS does not generally want you to report everyone who you think *might* be doing something wrong. They are not going to open an investigation on someone or audit their returns based on your suspicions. If you have actual evidence of wrongdoing they want to hear from you. Otherwise your best course of action is probably to just ignore the matter.

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  • Eva
    Lv 7
    1 month ago

    Any report to the IRS is kept anonymous, so they wouldn't know who to sue. The IRS doesn't follow up on a lot of small reports because they don't have the personnel to do so.

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  • 1 month ago

    Nope.  If the IRS believes you're acting in good faith you have nothing to fear.  If you're right, they may even give you a cut of any delinquent taxes collected.  

    Link for the thumbs-downers who don't believe that the IRS really does this.  

    https://www.irs.gov/compliance/whistleblower-infor...

    "Whistleblower Office Home

    The IRS Whistleblower Office pays money to people who blow the whistle on persons who fail to pay the tax that they owe. If the IRS uses information provided by the whistleblower, it can award the whistleblower up to 30 percent of the additional tax, penalty and other amounts it collects."

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