Money Coach Lynnette Khalfani-Cox on Avoiding Tax Season Scams

The Dirty Dozen: Evolving Tax Scams

• ⚠️ Each year, the IRS releases a "Dirty Dozen" list of tax scams, and this year is no exception, with scammers employing both perennial favorites and newfangled technological methods.
• 💡 While scams exist year-round, the approaching federal tax deadline makes this period particularly ripe for fraud.

Social Media Tax Advice Scams

• 📱 Scammers on social media promote so-called "hacks" or "shortcuts" that encourage taxpayers to manipulate their W2 forms or claim non-existent tax refunds or credits.
• 🎯 The goal of these scams is to entice individuals into seeking a larger tax refund through fraudulent means.
• 🔍 The advice is to verify dubious advice with the IRS or a trusted tax professional, rather than blindly following viral trends.

Bogus Tax Credits and Misleading Information

• 💸 Scammers are misleading people about legitimate credits like the fuel tax credit or credits for sick and family leave, and promoting completely fake credits, such as the "self-employment credit."
• 💰 These fake credits often promise large sums, like $5,000 to $30,000 or more, appealing to the large population of gig workers, 1099 contractors, and freelancers.
• ✅ To differentiate real from fake, taxpayers should check irs.gov, visit free tax clinics, or consult a licensed tax expert.