Louisiana Department of Revenue

Tax Fraud

Home : Tax Fraud

• What is Tax Fraud?
• Evasion or Avoidance?
• Report Tax Fraud

What is Tax Fraud?

Fraud is a deception deliberately practiced to secure unfair or unlawful gain. Another definition is the intentional misrepresentation of truth in order to obtain something of value by inducing another to rely upon false information.

Some examples of fraudulent activity that you may become aware of through the bragging of tax cheats or other means:

• Intentionally failing to file individual income tax returns.
• A self-employed individual failing to report all income received.
• Filing an individual income tax return and deliberately understating the amount of income that was earned during the tax year.
• Overstating the number of children or other dependents on an individual income tax return.
• Filing an individual income tax return claiming to be a resident of another state while residing in Louisiana.
• Making false or fraudulent claims for refunds.
• Filing a Louisiana General Sales Tax return deliberately omitting sales tax transactions on which sales tax was collected.
• Failing to maintain records that show the true income and expenses of a business.
• Preparing documents, books and records that understate the true income or overstate the expenses of a business.
• Sales of imported cigarettes and other tobacco products without payment of the Excise Tax on these products.
• Sales of imported beer, liquor or wine without the payment of the Excise Tax on these products.
• Operating a business without registering with the Louisiana Department of Revenue.
• Payment of cash wages to employees for the purpose of avoiding Louisiana Withholding Tax.
• Avoiding the Excise Tax on diesel fuel by using "Off Road Diesel" in the fuel supply tanks of a motor vehicle for use on highways.
• Ignoring the requirements to report and pay use taxes on goods imported into the state.
• Opening and closing of new businesses to evade taxes.
• Operating a business using someone else’s name to avoid business and income taxes.

Evasion or Avoidance?

Tax Avoidance:

• Legal tax planning to minimize one’s tax liability.
• Reduce, avoid, or minimize taxes by changing the nature of a transaction to comply with a tax exemption or exclusion. (Details of the transaction are disclosed).
• Not concealed or misrepresented.
• Shapes and preplans events to reduce or eliminate tax liability by taking advantage of favorable tax laws.
• Prepares documents showing the details of the transactions and reports the transactions.

Tax Evasion:

• Willful attempt to circumvent the tax laws through misrepresentation or deceit.
• Involves deceit and deception, hiding the true nature or misrepresenting the facts to take advantage of a tax exemption or exclusion that doesn’t actually apply.
• Intentional concealment and misrepresentation.
• Structures events and transaction to hide the true nature of the transactions.
• Fails to prepare, conceals, alters, or destroys the documents that show the true details of the transactions.

Report Tax Fraud

While we have been successful in our enforcement efforts, it is impossible to do so without you. Please report any individual, business, or abusive tax promoter that you suspect might be cheating you and the other citizens of this state by committing fraud. All of the information that you submit will be confidential and your identiy will remain protected. Please select the appropriate on-line reporting form.

If you are not comfortable with transmitting information over the Internet, you may select the appropriate paper reporting form below and print out a copy that must be sent in by regular mail (or FAX):

• Business Tax Fraud Reporting Form
• Individual Tax Fraud Reporting Form
• Promoter Tax Fraud Reporting Form