IRS Is Cashing In On Social Media Tax Advice ($162MM In Penalties)

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

James Clifford, an IRS spokesperson, said, “These schemes are not only misleading but can cost taxpayers dearly. You may end up with rejected claims and a penalty of up to $5,000, in addition to any other applicable penalties. To date, the IRS has imposed over 32,000 penalties. It’s in the taxpayer’s best interest to stay informed.”

BE ALERT

The scams frequently exhibit some of the following traits:

• 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.

FEELING LIKE A VICTIM OF A SCAM?

Taxpayers who believe they have been misled or filed an incorrect return should:

• Amend the tax return as soon as possible using Form 1040-X, Amended U.S. Individual Income Tax Return.

• Respond promptly to any IRS letters or notices.

• Seek help from a reputable tax professional or the IRS’s official resources at IRS.gov.

If you suspect a tax scam, report it to the IRS by emailing [email protected] or file a complaint with the Treasury Inspector General for Tax Administration (TIGTA).