It's never a good idea to take tax advice from social media. Scam artists often promote tax credits and claims for fraudulent refunds. They promise easy and fast refunds. Taxpayers following this advice end up with large tax penalties for filing these frivolous claims instead of the refunds they hoped for. On average, these taxpayers are each billed $5,062.50 in penalties for making fraudulent claims on their tax returns.
The IRS recently assessed $162 million dollars to taxpayers for filing fraudulent fuel tax credit and Sick and Family Leave Credits after bad actors posing as tax experts on social media encouraged thousands of taxpayers to file inaccurate or frivolous returns by falsely claiming that all taxpayers are eligible for credits they do not actually qualify for.
“These schemes are not only misleading but can cost taxpayers dearly,” said James Clifford, IRS Director Return Integrity and Compliance Services. “People who follow this advice could end up with rejected claims and a penalty of up to $5,000 in addition to any other penalties that might apply. So far, the IRS has imposed over 32,000 penalties costing taxpayers more than $162 million.”
IRS news release IR-2025-90 dated Sept. 8, 2025 provides for some common traits to look out for in these scams:
The bottom line is that there is a fine line between a great opportunity and something that is too good to be true. When in doubt, give us a call. A good accountant is not the one who gets you the largest refund. It's the one who reports all your income and provides you with all the legitimate tax credits and deductions that you qualify for in a solid tax return that will stand up to IRS scrutiny.
For more information see IRS News Release IR-2025-9.
The IRS recently assessed $162 million dollars to taxpayers for filing fraudulent fuel tax credit and Sick and Family Leave Credits after bad actors posing as tax experts on social media encouraged thousands of taxpayers to file inaccurate or frivolous returns by falsely claiming that all taxpayers are eligible for credits they do not actually qualify for.
“These schemes are not only misleading but can cost taxpayers dearly,” said James Clifford, IRS Director Return Integrity and Compliance Services. “People who follow this advice could end up with rejected claims and a penalty of up to $5,000 in addition to any other penalties that might apply. So far, the IRS has imposed over 32,000 penalties costing taxpayers more than $162 million.”
IRS news release IR-2025-90 dated Sept. 8, 2025 provides for some common traits to look out for in these scams:
- Social media posts that claim everyone qualifies for certain tax credits.
- Promises of “easy” or “fast” refund with minimal documentation.
- Instructions to file amended returns, even if you did not originally qualify for the credits.
- Encouragement to ignore IRS letters or respond with false information.
The bottom line is that there is a fine line between a great opportunity and something that is too good to be true. When in doubt, give us a call. A good accountant is not the one who gets you the largest refund. It's the one who reports all your income and provides you with all the legitimate tax credits and deductions that you qualify for in a solid tax return that will stand up to IRS scrutiny.
For more information see IRS News Release IR-2025-9.