Report Nebraska Tax Fraud

The Nebraska Department of Revenue (Department) is committed to the fair administration of the tax laws of Nebraska. This means that Nebraska taxpayers should pay no more or no less than the tax or fees owed. The majority of taxpayers seek to pay their fair share of taxes to fund the necessary services they receive from the state. Unfortunately, there are individuals and businesses who work hard to avoid paying what they owe. This is fraud and it is illegal. We need you to help us find and stop this activity.

How do I report tax fraud?

You can report tax fraud by any of the methods listed below.

  • By email (select “Report Tax Fraud” in the subject line, and include all of the information below in your message), or
  • By calling, visiting, or mailing the Department:
    • (800) 742-7474 (toll free in NE & IA) or (402) 471-5729.
    • Lincoln
      301 Centennial Mall South
      PO Box 94818
      Lincoln, NE 68509-4818
      Telephone (402) 471-5729
    • Omaha
      Nebraska State Office Building
      1313 Farnam Street
      Omaha, NE 68102-1871
      Telephone (402) 595-2065

Note: Suspected cases of federal tax fraud should be reported to federal authorities.

What is tax fraud?

Tax fraud is a deliberate attempt to evade tax laws by not collecting, reporting, or paying a legally imposed tax.

Examples of tax fraud:

  • Collecting sales tax from customers and not remitting it;
    • This includes the use of software on cash registers to eliminate or suppress a certain percentage of sales and fraudulently retaining the sales tax collected.
  • Not charging and collecting sales tax on the correct amount of the sale;
  • Falsely stating a delivery location to avoid charging state or local sales taxes;
  • Falsely claiming a tax exemption for purchases as either “for resale” or purchased for a tax exempt entity;
  • Intentionally not filing required tax returns;
  • Not reporting all income received;
  • Filing an individual income tax return and claiming to be a resident of another state while residing in Nebraska;
  • Nebraska residents registering their automobiles or motor homes in another state to avoid Nebraska taxes;
  • Making false claims for refunds;
  • Preparing documents, forms, books, and records that understate the true income or overstate the expenses of a business;
  • Operating a business without registering with the Nebraska Department of Revenue;
  • Paying cash wages to employees for the purpose of avoiding Nebraska withholding tax;
  • Avoiding the excise tax on diesel fuel by using dyed diesel in the fuel supply tanks of a motor vehicle for use on highways;
  • Ignoring the requirements to report and pay use tax on goods imported into the state; and
  • Operating a business using someone else’s name to avoid business and income taxes.

What will the Department do, and what will I be told afterwards?

The Department will review the information you provide along with our records for the person or business in question. Any additional steps will be determined by the outcome of this review. The Department may contact you if additional information is needed for its investigation.

The Department cannot reveal any taxpayer’s information because of confidentiality laws, so we cannot tell you what steps were taken in reviewing the information you provided. The Department sincerely appreciates any information or tips that uncover tax fraud. The Department will also take every precaution within its control to protect the identity of anyone who provides information regarding potential tax fraud or the underreporting of taxes.

The Department may also share information that is provided with the Internal Revenue Service.

What information should I provide?

Please provide a description, with as many specific details as possible, of the activities which you believe are fraudulent. This could include:

  • The name, address, and Nebraska identification number, if available, of the person or business;
  • The date or time period of the potential fraud;
  • Any details of what happened — what you know, and how you know; and
  • Copies of any documents relating to the activities you are reporting (this will be extremely helpful to the Department in reviewing your complaint).
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