What is Tax Fraud?
Tax fraud occurs when a person or business intentionally provides false information on a tax return. This can include lying about income, expenses, dependents, or residency to reduce the amount of tax owed or to receive an unearned refund.
If you know or suspect tax fraud, report it immediately to help protect Montana’s communities and services.
- Intentionally failing to file individual income tax returns
- Intentionally failing to report all taxable income on individual tax return
- Filing an individual income tax return and deliberately understating the amount of income that was earned during the tax year
- Filing an individual income tax return claiming to be a resident of another state while residing in Montana
- Making false or fraudulent claims for refunds
- Failing to maintain records that show the true income and expenses of a business
- Preparing documents, books, and records that intentionally understate the true income or overstate the expenses of a business
- Operating a business without registering with the Montana Secretary of State or Department of Revenue
- Paying cash wages to employees for the purpose of avoiding Montana withholding tax
- Opening and closing of new businesses to evade taxes
- Operating a business using someone else’s name to avoid business and income taxes