Don’t Let Social Media Cost You Thousands in Tax Penalties

The IRS has recently handed out more than $162 million in penalties to taxpayers who followed misleading tax advice they found on social media. These posts often promise “easy money” by encouraging people to claim tax credits they don’t actually qualify for. Unfortunately, many taxpayers who took the bait are now facing denied refunds, audits, and hefty fines.

The Problem With “Quick Fix” Tax Advice

Some of the most common false claims involve credits like the Fuel Tax Credit and the Sick and Family Leave Credit. These credits are real, but they’re designed for very specific situations -most taxpayers aren’t eligible.

Scammers and misinformed posters often suggest that everyone can file for them. They may even encourage taxpayers to file amended returns or ignore IRS notices. What sounds like a quick refund often turns into:

• Delayed or denied refunds

• $5,000 penalties for filing a frivolous return

• Future IRS examinations and enforcement actions

In short: the “easy money” approach isn’t worth the risk.

How to Protect Yourself

When it comes to taxes, reliable guidance matters. Here’s how you can stay safe:

• Be cautious with online advice. If a post claims everyone qualifies for a certain credit, that’s a red flag.

• Check official IRS resources. The IRS maintains a list of frivolous tax arguments to watch out for.

• Work with a professional. A trusted CPA can help you maximize deductions and credits while keeping you in compliance with tax law.

Our Takeaway for Clients

At Kamish & Associates, we know tax law can be complicated, and that makes it easy for misinformation to spread. But the cost of following bad advice can far outweigh any potential “refund.”

If you’re unsure about a tax strategy or credit you’ve heard about, reach out before you file. We’ll review your situation, give you clear answers, and help you avoid unnecessary penalties.

Have questions about what tax credits you may qualify for? Contact us today to schedule a consultation.