IRS is issuing huge penalties for implementing bad social media tax advice

[Janet Behm]

The Internal Revenue Service (IRS) has clever algorithms. They are tuned to find the latest fraudulent advice from “Tick-Tock Tax Experts.”

Be alert to any advice that includes the following:

• >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.

[William Whitley]

My experience is you are better off seeking the advice of a qualified professional for tax advisory and tax preparation. I don't provide either, but I typically refer people to either a CPA or an EA when they need those services. Furthermore, by seeking out one of those types of professionals, they can represent you before the IRS as needed. While there may be legitimate tax credits and other deductions to help reduce taxes, it's best to work with a qualified professional to avoid problems down the road, which may cost more in the long run.