Thousands of taxpayers that followed inaccurate advice on social media or were victims of tax scams could face financial penalties, the Internal Revenue Agency has warned.
Tax officials said this week that they have ongoing concerns about matters that led to some taxpayers filing inflated claims for refunds during the past tax season. Scams focused on the Fuel Tax Credit, the Sick and Family Leave Credit and household employment taxes.
Myths that it is possible to get huge tax refunds that claimants for which claimants are not eligible continue to circulate and the IRS says that those who have filed for these refunds may face delays, a requirement to prove their eligibility, potential audits, financial penalties, and large financial penalties.
“Scam artists and social media posts have perpetuated a number of false and misleading claims that have tricked well-meaning taxpayers into believing they’re entitled to big, windfall tax refunds,” said IRS Commissioner Danny Werfel. “These bad claims have been caught during our fraud review process. Taxpayers who filed these claims should realize they’ve been tricked, and they face an extensive review process and a long potential wait if they’re owed a refund for other things.”
The three most common scams or inaccurate advice relate to:
“These improper claims have been fueled by social media and people sharing bad advice,” Werfel said. “Scam artists constantly prey on people’s hopes and try to use the complexity of the tax system to convince people there are secret ways to get a big refund. These three credits illustrate that it’s important to carefully review the tax return for accuracy before filing and rely on the advice of a trusted tax professional, not some fly-by-night preparer or a questionable source they hear on social media.”
If taxpayers are aware that they have filed inaccurate claims, they should use the irs.gov tool Should I file an amended return? to determine if they should amend their return. If they submit an amended return, they do not need to visit a Taxpayer Assistance Center.
Some legitimate claimants may receive a letter from the IRS asking them to verify their claim and should provide the necessary documentation to do so or speak to a tax professional.
The move follows earlier dealmaking and leadership changes as the Overland Park-based hybrid RIA builds toward a nonprofit-focused institutional platform.
From building multigenerational relationships to entering new adult planning areas and building healthy financial habits, higher education can be a gateway for advisors to become trusted partners to families.
The wirehouse-focused aggregator's rollout to more than 100 advisors lands as financial advisors race to add tax and estate planning tools.
Also, Orion has added BlackRock, Fidelity, and Vanguard to its custom portfolios suite, and RedBlack has set up a new headquarters after crossing a trillion-dollar milestone.
Also, New York-based Legacy Edge Advisors names its first-ever CEO, while Novare Capital Management hires a Vanguard veteran with a multigenerational planning focus.
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income