WASHINGTON – The Internal Revenue Service (IRS) is warning taxpayers about a scam promoters and social media are marketing that can cause people to file false claims.
Their pitch offers something they call the “Self-Employment Tax Credit” as a way for self-employed people and gig workers to get big payments for the COVID-19 pandemic period. Similar to misleading marketing around the Employee Retention Credit, inaccurate information suggests many people qualify for the tax credit and payments of up to $32,000 when they actually do not, the IRS said Monday in a statement.
The underlying credit referred to by promoters and in social media isn’t called the “Self-Employment Tax Credit,” it’s a much more limited and technical credit called Credits for Sick Leave and Family Leave.
The IRS warns that many people simply do not qualify for this credit and that it is closely reviewing claims coming in under this provision so people filing claims do so at their own risk.
“This is another misleading social media claim that’s fooling well-meaning taxpayers into thinking they’re due a big payday,” IRS Commissioner Danny Werfel said in the statement. “People shouldn’t be misled by outlandish claims they see on social media. Before paying someone to file these claims, taxpayers should consult with a trusted tax professional to see if they meet the very limited eligibility scenarios.”
Previously: IRS releases nationwide warning about tax scam
Credits for Sick and…
