Reporting tax fraud
The SCDOR is committed to the fair administration of South Carolina tax laws. This means that every taxpayer should pay no more and no less taxes than they owe the State of South Carolina. We recognize that most taxpayers are honest and seek to pay their fair share for the services they receive. Unfortunately, a few people and businesses break state tax laws on purpose. This is fraud and it's illegal.
The SCDOR’s Criminal Investigations Division’s (CID) primary function is to review alleged tax law violations. It investigates those violations and recommends criminal prosecutions as needed. CID relies on referrals to find willful noncompliance with the state's tax laws. These referrals come from other divisions, other government agencies, and the public.
What do I do if I think that I am a victim of identity theft and believe that it has led or could lead to tax fraud?
How do I report tax fraud?
Email:
or
Mail:
South Carolina Department of Revenue
Attn: Fraud Advisor
2070 Northbrook Blvd, Suite B7
North Charleston, SC 29406
After the SCDOR receives your report, we cannot update you on your complaint or any investigations. Please follow our News page for information on tax related arrests and charges.
How can I help fight fraud?
In addition to reporting it, the best way to fight tax fraud is to prevent it. Visit our
security tips to learn more.
What is tax refund fraud?
Tax refund is when someone files a fake tax return using your personal information to get a tax refund from the IRS or a state tax department. This information could include your Social Security Number or any other piece of private information that is unique to you.
How big of a problem is tax refund fraud?
- Tax refund fraud has reached pandemic levels across the nation.
-
Tax identity theft is the most common form of identity theft reported to the Federal Trade Commission.
- Tax refund fraud has cost American taxpayers billions of dollars, so our anti-fraud measures must be aggressive.
What does this mean to South Carolina taxpayers?
- The SCDOR is committed to protecting taxpayers and taxpayer dollars.
- For many years, the SCDOR fraud detection unit has focused on identifying fraud. As fraudsters continue to change and evolve, we have to do the same.
- We must protect taxpayers in the digital age. It is our job to review returns carefully and use all tools and resources to find and stop tax refund fraud.
- Our enhanced fraud measures may mean that some returns take longer to process. But, we want your refund to end up in your pocket and not in the hands of a criminal.
Our approach to fighting fraud includes:
-
Enhanced use of technology: The SCDOR uses predictive analytics to detect fraud.
-
Partnerships: We partner with many other organizations to fight fraud, including:
-
Payroll industry leaders
-
The IRS
-
Other states
-
Public information: The best way to fight tax refund fraud is to prevent it. South Carolina taxpayers are key stakeholders in this effort are. Taxpayers can help fight tax fraud by:
-
Being vigilant to protect their private and personal information
-
Not oversharing on social media
-
Using strong passwords
-
Keeping their devices clean and secure.
Visit our Security Center for more tips.
