Scrolling through social media can be a fun way to discover new recipes, travel tips, or even money-saving hacks—but it’s the wrong place to look for tax advice. Unfortunately, thousands of taxpayers are learning that lesson the hard way. According to Accounting Today, the IRS has already levied over $162 million in penalties against people who claimed fraudulent tax credits promoted on social media.
Here’s the gist: Facebook, TikTok, and other social networks are buzzing with “hacks” claiming that everyone qualifies for certain tax credits, like the Fuel Tax Credit or the Sick and Family Leave Credit. Sounds great, right? Free money? The problem: those credits apply to very specific situations, not the general public. Filing for them when you don’t qualify isn’t a shortcut. It’s a one-way ticket to potentially experiencing:
- $5,000 in penalties for frivolous returns,
- Delayed or denied refunds, and
- Extra love letters from the IRS (okay, maybe not so loving).
How to Protect Yourself
- Rely on trusted sources. Always confirm tax guidance through official IRS publications or a qualified tax professional.
- Be skeptical of “too good to be true” claims. If a post suggests that “everyone” qualifies for a tax credit, it’s a giant red flag.
- Stay informed. The IRS regularly updates its list of frivolous positions that can trigger penalties.
- Work with a professional. An Enrolled Agent (EA), CPA or tax-intelligent financial advisor can help ensure your tax strategy is compliant, effective, and tailored to your situation.
I get it—taxes aren’t fun, and no one wants to turn down a refund. But don’t let a stranger on the internet trick you into a $5,000 (or more) mistake. When in doubt, ask a professional who has your best interest at heart (and knows the tax code).
Sources:
Accounting Today – “IRS levies $162M in penalties for false tax credits promoted on social media”
IRS.gov - Identification and Processing of Frivolous Documents