Amid the rise of tax misinformation on social media platforms like Instagram and TikTok, the IRS is stepping up its review process this tax season to combat online scams and warn taxpayers of misleading advice.
“Bad tax advice on social media continues to grow, luring unsuspecting taxpayers into filing bad tax returns,” former IRS Commissioner Danny Werfel said last year, before stepping down in January.
“We urge people to do some research before falling for these scams. Finding a trusted tax professional or visiting IRS.gov is a better way to research a tax issue than relying on someone talking in their car or their kitchen about a non-existent tax hack.”
As the 2025 tax return season ramps up, officials are asking taxpayers to be aware of the signs of bad tax advice and scammers.
How to recognize bad tax advice
Promising a big payday. “Common wisdom dictates that if it sounds too good to be true, it often is, and that’s especially with some of the crazy ideas about taxes being spread on social media,” Werfel said. Bad tax advice on social media may persuade taxpayers to lie on IRS or state forms or mislead them about credits they can claim. The IRS is making adjustments to filing requirements to help prevent taxpayers from claiming credits they don’t qualify for.
Demands or threats. Impersonators, such as those pretending to be the IRS or other officials, want taxpayers to pay “now or else.” They can threaten arrest or deportation. They also don’t let taxpayers question or appeal the amount of tax they owe. The IRS said it typically contacts taxpayers by mail. The agency doesn’t threaten to contact law enforcement or immigration officials and it doesn’t ask for payment on social media.
Website links. Odd or misspelled website links can take taxpayers to harmful sites, instead of the official IRS.gov.
People can report individuals who promote tax schemes, as well as tax preparers who deliberately file improper returns, by mailing a completed Form 14242 Report Suspected Abusive Tax Promotions or Preparers to the IRS Lead Development Center at 1973 N. Rulon White Blvd., Ogden, UT 84404.
What’s new for taxpayers in 2025
The changes for this filing season include a new fuel tax credit form designed to make it harder for taxpayers to be misled into claiming the credit, which reduces taxable income on specific types of fuel costs. The credit has been erroneously promoted on social media for regular drivers, but it’s meant for business owners using fuel that’s not for regular driving, such as off-highway business like equipment and machines, as well as farming purposes, according to the IRS.
The IRS will also be paying extra attention on “other withholding” claims on Form 1040 that have long been targets of scammers. In this overstated withholding scheme, scam artists suggest taxpayers falsify a large income and withholding amounts as well as a fictional employer supplying those amounts. Scam artists then instruct people to file the bogus tax return electronically, in hopes of getting a substantial refund due to the large amount of fraudulent withholding, the IRS warns.
Additional scams take advantage of the sick and family leave credit, which is for small- and midsize-employers in which taxpayers are encouraged to “invent” fictional household employees and then claim a refund based on false sick and family medical leave wages they never paid.
On top of renewed warnings of these common scams, the IRS is reaching out to taxpayers who may have used “ghost preparers” for tax returns. These preparers don’t identify themselves on the tax return, a red flag for taxpayers that they may fall victim to a scam or scheme.
As the IRS continues to grapple with misinformation and scams on social media, there are steps taxpayers can take to protect their returns and their personal information.
Be careful when choosing a tax professional
Filers can protect their tax return and sensitive information by working with credentialed tax preparation professionals, said Atarah Mayer, a certified public accountant with the Deerfield-based accounting firm Warady & Davis.
Trustworthy tax preparers never guarantee a large refund and will stand by their work, she said, and assist their clients if they’re hit with an audit.
“As soon as someone says that they can guarantee a big credit or a big refund, that’s a very big red flag because no one can guarantee anything until they go through the process,” said Mayer, who has 20 years of experience as a certified public accountant.
Scammers will also ask for a large commission on a bogus return, Mayer said, and will disappear once they get paid. This leaves the taxpayer to deal with the inevitable IRS audit, on top of being swindled out of their money.
“If there are any issues, whether they’re liable for more taxes or any penalties or interest, it’s the taxpayer’s responsibility to pay it. The IRS is not going to come after the accountant or whoever filed the return,” Mayer said.
While taxpayers can file simple returns themselves, it’s best to let a professional double-check returns claiming new credits or exemptions, she said.
If hiring a CPA is cost-prohibitive, seek out a professional tax preparation service or community organizations that often offer free tax prep.
“If you can’t afford a CPA, then what you want to do is go to one of the major tax preparation entities like H&R Block,” said Philip Turner, an attorney who represents people accused of filing inaccurate or fraudulent tax returns. ”Their people take training. They also stand behind their work.”
If a taxpayer has questions about advice or credits they’ve seen online, asking a professional can help save them from the hassle of an audit, according to Turner, who has more than 50 years experience in the field.
“Contact them and ask them about what you’ve heard,” he said. “For very, very few dollars, you can save yourself a lot of money and a tremendous amount of agony.”
Double-check your information on IRS.gov
More misinformation online coupled with the potential for new tax codes under the Trump administration mean verifying information is more important than ever.
“Especially in the past year or two, [misinformation] has jumped significantly,” Mayer said.
IRS spokesperson Adolfo Flores said the best place to verify tax code information is on IRS.gov.
“If individuals have doubts about the legitimacy of a particular tax credit, they should review the many resources available on IRS.gov or seek advice from a qualified tax professional and, in some cases, file an amended return to remove claims for which they’re ineligible to avoid potential penalties,” Flores said.
The IRS website has a forms repository with detailed instructions for taxpayers on how to fill out the forms properly. To stay updated about the latest tax information, official IRS social media accounts can be a good resource.
“The best thing to do is be proactive. Do ample research on the appropriate forms — [on] the IRS website — because tax is complex and taxpayers may struggle to really understand all of the implications,” said Jake Kacynski, tax attorney with Howard & Howard’s Chicago office.
Filed a return based on bad advice? Correct it immediately
Taxpayers who filed a return based on bad tax advice should file an amended return as soon as possible.
“Taxpayers who follow dubious advice need to follow steps to verify their eligibility for the claim. Otherwise, they could face audits and expensive fines,” Flores said. “In some cases, they could be subject to federal criminal prosecution and imprisonment.”
If an amended return is filed quickly, sometimes an audit or other penalties can be avoided.
“Typically, if these taxpayers fall victim to one of these scams, the IRS will be reasonable in working with them,” Kacynski said. “It behooves taxpayers to be proactive in taking remedial steps to address any sort of fraudulent filings that they may have acted on.”
By using common sense and taking reasonable steps to verify any tax information, filers can protect themselves from a stressful and time-consuming IRS audit, Kacynski said.
“As we’re approaching tax filing season, these scams are only going to be ramped up further on social media,” Kacynski said. “The onus is always on taxpayers. They sign their own tax returns under penalty of perjury. They need to take it seriously.”
