IRS Warns About Misleading Tax Advice from Social Media Promoters
On July 15, 2024, the Internal Revenue Service (IRS) issued a special warning regarding misleading tax advice circulating on social media. This alert follows numerous reports of inaccurate information leading to improper tax filings.
Specifically, the warning highlights misleading claims about a “Self Employment Tax Credit.” Promoters on social media platforms are falsely suggesting that gig workers and various self- employed individuals may be eligible for a substantial tax credit under COVID-19 relief laws, including a credit for “Sick Leave and Family Leave.” In reality, no such “Self Employment Tax Credit” or “Self-Employment Tax Credit” is available through the IRS; further, credit for leave related to COVID-19 has very strict eligibility requirements that many self-employed individuals
do not meet.
Taxpayers who file false claims – intentional or not – may face a range of short-term and long-term consequences, including follow-up tax audits, steep financial penalties, and even criminal charges, convictions, and restitution. Ensuring that all claims are legitimate and well-documented is essential to avoid unintended and undesirable consequences, including delayed tax refunds.
Some taxpayers who have already filed incorrect claims might still be able to correct their filings to help minimize their potential liability. However, the IRS urges taxpayers to avoid relying on “ghost preparers” and, rather, to consult with trusted tax professionals before filing any tax claims. [This would include corrections!]
It is crucial for all taxpayers, including ones who are self-employed, to avoid falling victim to scams that place their hard-earned assets at risk. Steer clear of tax advice and services from unqualified social media influencers and other questionable sources. For a statement from the IRS click here to read more.
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