IRS Warns of Dangerous Tax Advice on Social Media

Social Media Tax Scams

• ⚠️ The IRS is issuing a warning about misinformation and bad tax advice circulating on platforms like TikTok.
• 💡 Many social media claims about obscure credits and deductions, such as writing off pets or hiring children, contain just enough truth to be misleading and dangerous.
• 🚫 Following this advice can lead to fines, delays in refunds, and penalties for claiming ineligible credits.

IRS Scrutiny and Review

• 🔍 The IRS is increasing reviews of tax returns that claim unusual withholdings or credits based on social media tips.
• 📊 Over 700,000 taxpayers faced refund delays at the end of last year due to returns frozen for review after claiming potentially ineligible credits.
• 📢 The National Taxpayer Advocate's report partially blamed social media misinformation for these issues.

Common Mistakes and Missed Opportunities

• 🎯 A significant mistake people make is not claiming credits they actually qualify for, such as the Earned Income Tax Credit (EITC) and the Child Tax Credit.
• 💰 The IRS is more likely to question or add back omitted income items like cryptocurrency than to add back missed deductions or credits.
• 📉 Eligible taxpayers left over $7 billion unclaimed in just one year for the Earned Income Tax Credit alone.

Seeking Professional Advice

• 🤝 Taxpayers are advised to speak to a trusted tax professional instead of relying on ill-informed social media content.
• 🗓️ The general filing deadline for tax returns is April 15th.