The Internal Revenue Service (IRS) is warning taxpayers about a surge in fraudulent tax schemes circulating online — particularly on social media — that encourage the misuse of credits such as the Fuel Tax Credit and the Sick and Family Leave Credit.
Since 2022, thousands of taxpayers have been misled by false claims suggesting that anyone can qualify for these credits. Many posts promote “easy” refunds or direct people to file amended returns for credits they do not actually qualify for. These misleading schemes have led to denied refunds, delayed processing, and penalties of up to $5,000 for frivolous filings.
According to the IRS, more than 32,000 penalties totaling $162 million have already been imposed on taxpayers who followed this type of misinformation.
How to Spot These Scams
Common warning signs include:
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Social media posts claiming everyone qualifies for certain tax credits
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Promises of fast refunds with minimal documentation
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Instructions to file amended returns when you don’t meet eligibility
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Advice to ignore IRS letters or provide false responses
What To Do If You’ve Been Misled
If you believe you’ve been impacted by one of these scams:
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File an amended return using Form 1040-X as soon as possible
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Respond promptly to any IRS letters or notices
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Seek help from a qualified tax professional
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Report suspicious activity to phishing@irs.gov or the Treasury Inspector General for Tax Administration (TIGTA)
Stay Informed
Always verify tax information through official IRS sources — not social media posts. For the latest updates and verified alerts, visit the IRS Tax Scams page or follow us on LinkedIn.
At Bucknam & Conley CPAs, we help individuals and businesses stay compliant with evolving tax laws and avoid costly mistakes. If you have questions about recent IRS updates or need professional tax guidance, Contact Us Today!