IRS Warns for Dirty Dozen: Avoid Social Media Tax Scams for Safe and Secure Filing

Social Media Tax Scams: Tax season can be stressful, and sometimes we just want to get the biggest refund possible. Unfortunately, social media is full of bad advice that can lead you into serious trouble with the IRS.

The IRS recently warned taxpayers about people spreading false information on social media, like Youtube, TikTok and Instagram. This information can convince you to misuse tax forms or file a fraudulent return.

Why You Should Be Careful About Social Media Tax Tips

• Inaccurate Information: People might be trying to scam you, or they just don’t know what they’re talking about.
• Focus on Refunds, Not Accuracy: Scammers often promise huge refunds for following their advice. This should be a red flag!
• Wrong Forms, Wrong Purpose: Some scams involve using legitimate forms like a W-2 (wage statement) in the wrong way.

Examples of Recent Social Media Tax Scams

The IRS is highlighting this issue as part of their “Dirty Dozen” campaign, which focuses on the 12 most common Social Media Tax Scams. Let’s Check some of the Social media scams;

• Fake W-2 Income: This scam tells you to enter fake income and withholding amounts on your W-2 to get a bigger refund. This is fraud and can lead to serious penalties.
• Misusing Credits: Another scam involves using credits meant for self-employed people on a regular W-2 return. These credits aren’t available for everyone.
• Fake Household Employees: This scheme tells you to make up fake employees and claim fake wages to get a refund for sick leave. The IRS is on the lookout for this!

Misinformation about Form 8944 Scheme

Social media can be a great resource for many things, but tax advice isn’t always one of them. There’s a scam circulating that claims you can use Form 8944 to get a refund from the IRS, even if you owe money. This is completely false!

Here’s the truth about Form 8944:

• It’s a legitimate IRS form, but it’s only for tax preparers.
• It allows them to request a hardship waiver to file tax returns on paper instead of electronically.
• It has nothing to do with taxpayer refunds.

If you see advice online suggesting you use Form 8944 to get a refund, ignore it! Filing a false tax return can lead to serious consequences, including fines and even criminal charges.

How to Get Safe and Reliable Tax Advice

• IRS.gov: The official IRS website has everything you need to file your taxes correctly, including instructions for all tax forms.
• IRS Social Media: Follow the official IRS social media accounts for accurate tax information.
• Tax Professionals: If you need help with your taxes, consult a qualified tax professional like a CPA or Enrolled Agent.

Protect Yourself from Tax Scams

• Don’t Trust Everything You Read: Be skeptical of any tax advice you see on social media.
• Verify Information: Double-check any tax information you find online with the official IRS website or a trusted tax professional.
• Use Legitimate Resources: The IRS website has a wealth of information on how to file your taxes correctly, including instructions for all tax forms.

How to Report Tax Scams to IRS

If you see someone promoting bad tax advice on social media, you can report them to the IRS. You can also report tax return preparers who you suspect are filing fraudulent returns.

Here’s how to report a tax scam:

• Use the IRS online form: https://www.irs.gov/businesses/small-businesses-self-employed/abusive-trust-tax-evasion-schemes-referrals-contacts
• Mail or fax a completed Form 14242PDF with any supporting documents to the IRS Lead Development Center.

The Bottom Line

Don’t trust everything you see on social media, especially when it comes to taxes. The IRS website and qualified tax professionals are your best resources for accurate tax information.

Key Takeaways of Social Media Tax Scams

• Be skeptical of tax advice on social media.
• Double-check information with the IRS website or a tax professional.
• Report scams and suspicious tax preparers to the IRS.

By following these tips, you can avoid Social Media Tax Scams and get the refund you deserve!

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