IRS Warns Against Social Media Tax Credit Schemes

The IRS has recently penalized taxpayers more than $162 million for filing frivolous returns based on false information spread on social media. These posts promote ineligible tax credits—like the Fuel Tax Credit and the Sick and Family Leave Credit—and claim that “everyone qualifies.” In reality, these credits apply only in very limited circumstances.

What this means for you:

• Be cautious of tax advice on social media. If it sounds too good to be true, it probably is.
• Rely on trusted sources. The IRS regularly updates a list of frivolous claims on IRS.gov that can result in penalties.
• Know the risks. Filing improper claims can lead to denied refunds, delays, a $5,000 penalty, and possible future IRS examinations.
• When in doubt, ask a professional. Contact your tax advisor before amending a return or claiming a credit you’re unsure about.

Bottom line: Stick with legitimate credits you qualify for, and avoid being misled by quick-fix refund promises online.