The Internal Revenue Service has issued alert IR-2024-139 to warn about a series of scams and inaccurate advice circulating on social media. These schemes led to thousands of inflated refund claims during the past tax season, prompting the IRS to increase its compliance efforts related to false or questionable credits. The IRS aims to protect taxpayers from falling victim to these scams and ensure accurate tax filings.
To provide timely information to taxpayers and tax professionals, the IRS has released a set of Frequently Asked Questions (FAQs). These FAQs offer general guidance and may not address every taxpayer's specific circumstances. They are subject to updates and modifications as the IRS reviews and gathers more information.
The IRS specifically warns against scams involving the Fuel Tax Credit, the Sick and Family Leave Credit, household employment taxes, and overstated withholding. Many taxpayers have submitted dubious claims for these credits, resulting in delayed refunds and the requirement to provide legitimate documentation. These fraudulent claims often stem from misinformation and deceptive tactics circulated on social media.
Taxpayers are urged to be cautious of social media advice that promises large refunds through illegitimate means. The IRS highlighted many of these scams during its annual Dirty Dozen series, including the Fuel Tax Credit scam and bad advice from "ghost preparers." The IRS emphasizes the importance of verifying tax information and warns against following trending but fraudulent tax-related schemes on social media platforms.