The Internal Revenue Service (IRS) has warned taxpayers and tax professionals against trusting tax advice on social media. This warning comes as part of the Dirty Dozen campaign, an annual initiative that aims to educate people about 12 scams and schemes that put taxpayers and the tax professional community at risk of losing money, personal information, and data.
The IRS has seen an increase in inaccurate or misleading tax information circulating on social media. Fraudulent form filing and bad advice can be found online, and many schemes encourage people to submit false, inaccurate information in hopes of getting a refund. Commissioner Danny Werfel advises people to seek advice from trusted sources, such as a tax professional, tax software, or the IRS website, rather than following advice on social media.
While some of the schemes on this year’s Dirty Dozen list are new, others are re-emerging. Fraudulent form filing and bad advice on social media are two of the most common schemes, and taxpayers are being warned to be wary of trending hashtags and topics related to tax filing season. Scammers and fraudsters use these topics to spread false information and promote fraudulent schemes.
One example of a recent scheme circulating on social media involves Form 8944, Preparer e-file Hardship Waiver Request. Fraudsters are promoting the form as a way for taxpayers to receive a refund from the IRS, even if they have a balance due. This is false information, as Form 8944 is for tax professional use only. Taxpayers who intentionally file forms with false or fraudulent information can face serious consequences, including potentially civil and criminal penalties.
Another scheme involves Form W-2, Wage and Tax Statement. Scammers are encouraging people to manually fill out the form using tax software and include false income information, with the hope of getting a substantial refund. The IRS is actively monitoring this scheme and warns people not to fall for it.
The Security Summit initiative, which includes the IRS, state tax agencies, and the tax industry, is committed to protecting taxpayers, businesses, and the tax system against fraud and identity theft. The initiative has taken numerous steps since 2015 to warn people about common scams and schemes during tax season and beyond, including identity theft schemes.
In conclusion, taxpayers and tax professionals should be cautious when seeking tax advice on social media. False information and fraudulent schemes are prevalent on social media, and following bad advice can lead to compromising tax situations. Seek advice from trusted sources, and be aware of the schemes on the Dirty Dozen list. Remember, if it sounds too good to be true, it probably is.
