Don't Fall for Fake Tax Advice on Social Media!

The Internal Revenue Service has issued a warning about misleading tax advice circulating on social media regarding a non-existent "Self Employment Tax Credit." This misinformation is leading taxpayers to file false claims, putting them at risk of penalties.

Many promoters and social media platforms are touting this so-called "Self Employment Tax Credit" as a way for self-employed individuals and gig workers to receive substantial payments related to the COVID-19 pandemic. However, the actual credit being referred to is the Credits for Sick Leave and Family Leave, which has strict eligibility criteria. It's essential for taxpayers to consult with a trusted tax professional before making any claims based on information from social media.

What You Need to Know:

• Claims for the Sick and Family Leave Credits are only applicable for specific COVID-19 related situations in 2020 and 2021.
• Incorrectly claiming these credits can result in penalties and delays in processing your tax return.
• Consult with a tax professional to determine your eligibility for any tax credits.

Scams related to tax credits have been on the rise, with fraudsters taking advantage of people seeking to maximize their refunds. The IRS cautions against falling for schemes like the Fuel Tax Credit and household employment taxes, which have led to delayed refunds and additional scrutiny from tax authorities.

What do you think?

• Have you ever encountered misleading tax advice on social media?
• Do you believe the IRS should do more to combat tax scams?
• How can individuals protect themselves from falling victim to fraudulent tax schemes?