IRS Slaps $162M in Penalties Over Social Media Tax Credit Scams
WASHINGTON — The Internal Revenue Service (IRS) is warning taxpayers about a surge of fraudulent tax schemes spreading on social media, promoting credits that most taxpayers are not eligible for.
Since 2022, misleading posts and self-proclaimed “tax experts” have encouraged thousands to file false claims for credits such as the Fuel Tax Credit and the Sick and Family Leave Credit. The result?
👉 Over 32,000 penalties issued
👉 More than $162 million lost by taxpayers
👉 Penalties up to $5,000 per frivolous return
“These schemes are not only misleading but can cost taxpayers dearly,” said James Clifford, IRS Director of Return Integrity and Compliance Services.
🔎 How to Spot These Scams
Be cautious if you see:
- Social media posts claiming everyone qualifies for special credits.
- Promises of “easy refunds” with little or no paperwork.
- Instructions to file amended returns even if you don’t qualify.
- Advice to ignore IRS notices or respond with false information.
⚠️ What Happens If You Fall for It
Taxpayers who rely on such scams may face:
- Delayed or denied refunds
- Civil penalties up to $5,000 under IRS Code Section 6702
- Further IRS audits and enforcement actions
✅ What You Should Do
If you think you’ve been misled:
- File an amended return (Form 1040-X) immediately.
- Respond to IRS letters quickly.
- Consult a qualified tax professional for guidance.
- Report scams to the IRS at phishing@irs.gov or TIGTA.
Stay informed
The IRS urges all taxpayers to be cautious when relying on social media posts. Always verify claims with credible sources or consult a qualified tax professional.
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At Funds To Function, we believe no taxpayer should suffer because of bad advice. Viral “tax hacks” may look tempting, but they can cost you time, money, and peace of mind.
Here’s how we protect you:
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📢 Final Words
If a refund sounds too good to be true, it probably is. Stay informed, choose a trusted firm and protect your financial future.
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2 Replies to “IRS Slaps $162M in Penalties Over Social Media Tax Credit Scams”
Enrique1827
This is a timely and eye-opening article. Many businesses underestimate how quickly fraudulent schemes spread online, especially around tax credits. The penalties highlighted here are a strong reminder of why compliance and expert tax guidance are essential. Thanks for shedding light on this, it’s a must-read for business owners to stay cautious and informed.
John
Excellent insights! This article sheds light on a very real issue, how quickly misinformation around tax credits can spread on social media.
The $162M penalties by the IRS are not just numbers, but a strong reminder for businesses and individuals to stay alert. Accurate tax guidance and compliance are more
important than ever to avoid falling victim to such scams. Thank you for sharing such a detailed and timely piece. it truly helps readers stay informed and cautious.