The IRS on July 8 released a fact sheet regarding misleading tax advice that has proliferated on TikTok and other social media platforms, specifically on scams centered around the Fuel Tax Credit, the Sick and Family Leave Credit, household employment taxes, and overstated withholding.
The fact sheet includes nine frequently asked questions (FAQs) and answers about the two tax credits and what taxpayers should do if they’ve fallen for one of the scams, among other things.
The IRS first notified the public last April about seeing “wildly inaccurate tax advice” on social media in which scammers encouraged people to submit inaccurate information in hopes of getting a refund. The agency also released an alert in May warning taxpayers that they could face steep financial penalties, potential follow-up audits, or criminal action for improper refund claims.
“The IRS warns taxpayers not to fall for these scams centered around the Fuel Tax Credit, the Sick and Family Leave Credit, household employment taxes and overstated withholding,” the agency says in the fact sheet. “The IRS has seen thousands of dubious claims come in where it appears taxpayers are claiming credits for which they are not eligible, leading to refunds being delayed and the need for taxpayers to show they have legitimate documentation to support these claims. These FAQs are being issued to provide general information to taxpayers and tax professionals as expeditiously as possible.”
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