You don't indicate what the nature of the abuse is, but if it is limited to reporting the income under the wrong TIN, you won't find any support from the SAR instructions or regulations that suspected income tax evasion is even reportable. Also, at today's rates, the fund would have to be significant in order produce income reaching the $5,000 threshold.
If you believe the funds are not being applied correctly, you may want to make certain the parents understand the account they have opened and, if they persist, simply close the account. Misuse of the child's funds is a civil matter between the custodian and the child, not a potential violation of federal criminal law that would spur a SAR filing.