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.
From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.
Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.
“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.
Sellers shift focus: It's not about succession anymore.
Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.
RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.
As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.