IRS Warns Taxpayers About Rising Social Media Tax Scams

BREAKING NEWS – SEPT. 13, 2025

WASHINGTON — The Internal Revenue Service is warning taxpayers about a surge in fraudulent tax schemes spreading on social media. These scams promote the misuse of credits like the Fuel Tax Credit and the Sick and Family Leave Credit, leading many to file inaccurate or frivolous returns. As a result, thousands have faced refund denials and costly penalties.

Since 2022, the IRS has seen a sharp increase in questionable refund claims driven by misleading posts and individuals posing as tax professionals. Many of these posts falsely suggest that all taxpayers qualify for certain credits—some of which are only available to self-employed individuals or businesses. The IRS maintains a list of frivolous tax positions on IRS.gov that can result in penalties.

“These schemes are not only misleading but can cost taxpayers dearly,” said James Clifford, Director of Return Integrity and Compliance Services at the IRS. “Following this bad advice could lead to rejected claims and a $5,000 penalty—on top of other possible consequences. So far, over 32,000 penalties have been issued, totaling more than $162 million.”

Common Red Flags

Scams often share these characteristics:

• Claims that everyone qualifies for specific tax credits.
• Promises of fast or easy refunds with little documentation.
• Instructions to file amended returns without proper eligibility.
• Advice to ignore IRS correspondence or respond with false information.

Consequences of Falling for a Scam

Taxpayers who file false claims may face:

• Delayed or denied refunds.
• A $5,000 civil penalty under IRC Section 6702 for frivolous returns.
• Additional IRS scrutiny and enforcement actions.

What to Do If You’ve Been Misled

If you believe you’ve filed an incorrect return:

• File an amended return using Form 1040-X as soon as possible.
• Respond promptly to any IRS notices.
• Consult a trusted tax professional or visit IRS.gov for guidance.

To report a suspected scam, email phishing@irs.gov or contact the Treasury Inspector General for Tax Administration (TIGTA).

Stay Informed

The IRS urges taxpayers to verify tax advice from credible sources and avoid relying solely on social media. For updates on scams and fraud alerts, visit the Tax Scams page or follow @IRStaxsecurity on X (formerly Twitter).

Source Credit : https://www.irs.gov/newsroom