Tax Q&A;: IRS Hotline

This daily tax season column publishes questions from readers and answers from local members of the California Society of Certified Public Accountants.

Q: There is someone in my neighborhood who is running a cash-only business in order to avoid paying income tax and back taxes. Does the IRS have a special hotline or an anonymous tip line for reporting tax evaders such as this?

A: It does indeed. To report someone you suspect of being a violator, call the IRS’ Criminal Investigation Division at the Fresno Service Center, (800) 829-0433. You can be anonymous, or you can leave your name and phone number in case you qualify for a reward. IRS district directors may approve rewards for information that leads to the detection and punishment of any person guilty of violating or attempting to violate any internal revenue law. The IRS may also pay rewards for information needed to detect an underpayment of tax.

--WAYNE DE PRY, CPA, Pasadena

For more information on taxes and to see other questions and answers in this series, go to The Times’ Web site at https://www.latimes.com/taxes. To find a CPA, visit the California Society of CPAs at https://www.calcpa.org.