IRS Issues Urgent Warning About Social Media Tax Scams

September 15, 2025

The Internal Revenue Service (IRS) is alerting taxpayers to a surge in fraudulent tax schemes circulating on social media, which have led to thousands of inaccurate tax filings and significant financial penalties.

Why It Matters

The IRS reports that misleading social media posts and self-proclaimed “tax experts” have caused widespread confusion, resulting in over $162 million in penalties and more than 32,000 enforcement actions. Many taxpayers, misled by these schemes, are facing rejected refunds and steep fines.

Key Warning Signs

These scams often promote inappropriate use of tax credits, such as the Fuel Tax Credit and the Sick and Family Leave Credit, suggesting that everyone qualifies—when in fact, these credits are only applicable in specific cases.

Common red flags include:

Promises of “easy” or “fast” refunds with little documentation
Encouragement to file amended returns without eligibility
Advice to ignore IRS notices or respond with false information

The Risks

Filing false or frivolous tax returns can lead to:

Denied or delayed refunds
A $5,000 civil penalty under IRS Code Section 6702
Potential audits or further enforcement actions

IRS Officials Speak Out

“These schemes are not only misleading but can cost taxpayers dearly,” said James Clifford, Director of Return Integrity and Compliance Services at the IRS. “So far, over 32,000 penalties have been issued, costing taxpayers more than $162 million.”

What to Do if Affected

Taxpayers who believe they’ve been misled should:

File an amended return using Form 1040-X
Respond promptly to any IRS letters
Consult qualified tax professionals or use official IRS resources

The IRS encourages individuals to follow verified IRS social media accounts, subscribe to IRS e-news, and report scams to phishing@irs.gov or the Treasury Inspector General for Tax Administration.

Source: msn

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