How to Report Franchise Tax Fraud

Working residents of any country are required to submit a regular tax return and some try to cheat their way out from this responsibility thus creating a tax fraud which is punishable by law.

A tax fraud is existent in many cases, and is a crime that should be reported to the local authorities as soon as possible.

If you believe that the company you are working for is not complying with the franchise taxes that come with the business then you can report this information to the Franchise Tax Board. Many people and companies feel that they can get away with small cute from their taxes and though this may very well be true it is against the law in a sense you must be paying back the right to own your business to the government through the taxes you pay as you are considered a working individual in a country that is liable to submit annual returns.

A franchise tax fraud is deliberately refusing to pay the tax the franchise owes. There are many examples including: failure to report the income that has been received or cutting out certain cash influx, claiming to be resident of another state aside from the one you currently reside and work in, creating false tax claims for refunds or not filing the tax returns at all, fixing the books and documents to show a false statement of income or overstate certain expenses. Opening and closing of business is also a tactic used for tax evasion.

Initially you must identify what is really going on. Be able to tell the type of fraud that has been committed and everything that point to this fact. For all you know you could very well be just guessing and since you will be dealing with an actual business establishment it is important to make sure you get all the facts straight. Be able to investigate on the details and make a list of questions to ask the franchise so as to give them the benefit of the doubt. You will need to garner enough plausible truth to make your claim acceptable. Naturally the company will try its best to both deny and hide the evidence that leads to any trace of franchise tax fraud. Therefore if you come across some concrete evidence that the current franchise is committing a franchise tax fraud then go immediately to the local authorities to make a report. You may want to list down in writing the details of your claim and what pushed you to that conclusion. The investigation will use all your statements to verify what they are trying to find out. Written statements with all the details are preferred and accepted provided that they hold enough plausible truth that can be backed up easily.


    (All the above fields are required.)


    Popular Articles

    Join Our Newsletter