WASHINGTON, D.C. — The Internal Revenue Service is warning taxpayers about a surge in fraudulent tax schemes spreading across social media, many of which encourage individuals to falsely claim credits they are not eligible to receive.
The scams often target the Fuel Tax Credit and the Sick and Family Leave Credit, both of which apply only in limited circumstances. According to the IRS, misleading posts and self-proclaimed tax experts have convinced thousands of people to file inaccurate or frivolous returns. The result has been widespread refund denials and significant financial penalties.
“These schemes are not only misleading but can cost taxpayers dearly,” said James Clifford, IRS Director of Return Integrity and Compliance Services. Clifford noted that since 2022, more than 32,000 penalties have been imposed, totaling over $162 million. He added that taxpayers who follow bad advice risk rejected claims and fines of up to $5,000, along with other potential penalties.
Officials said the scams share several red flags: blanket claims that all taxpayers qualify for certain credits, promises of quick refunds with little documentation, instructions to file amended returns without basis, and advice to ignore IRS notices or provide false responses.
Taxpayers who file false claims face delayed or denied refunds, civil penalties under Internal Revenue Code Section 6702, and the possibility of further enforcement actions.
The IRS urged anyone who may have filed an improper return to correct it immediately by submitting Form 1040-X, the Amended U.S. Individual Income Tax Return. Taxpayers are also encouraged to respond promptly to IRS letters, seek guidance from trusted professionals, and consult official resources on IRS.gov.
Suspicious schemes should be reported by emailing phishing@irs.gov or filing a complaint with the Treasury Inspector General for Tax Administration.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.