What kinds of tax scams are spreading through social media

These schemes aren’t always legal “services” but bad advice, misrepresentations, or actual attempts to defraud taxpayers. Many of them exploit confusion about tax law, lack of awareness, or desperation (especially around refund, credit, or relief). Key types include:

Scheme Description / How it’s pitched What’s wrong / risk
Fabricating W‑2 Forms Advice that you can fill out a W‑2 with inflated income or withholding, sometimes inventing employers, to get a larger refund. This is outright fraud; you’ll be lying on your return. If caught, penalties, interest, possible criminal consequences.
Misusing short-lived credits or deductions For instance: using pandemic-era credits such as for sick leave or family leave (Form 7202), claiming them even if you don’t qualify (e.g. income was as an employee rather than self-employed) or for years where credit is no longer valid. If misclaimed, you may have to repay plus penalties. The IRS is watching these closely.
False claims of fuel tax credits Influencers telling people that they qualify for big fuel tax credits simply because they bought regular gas or other “everyday” fuel expenses. The credits are typically limited to businesses/farms using fuel for off-highway purposes. Claiming when you aren’t eligible can result in denied refunds and penalties.
Fake “Self‑Employment Tax Credit” Promotions or posts claiming there's a broad, generous self‑employment tax credit available (e.g. someone having up to $30‑$32k) when in fact there is no such general credit. Misleading; causes people to file false claims. If audited, the return can be adjusted, refunds reclaimed, and taxes/penalties assessed.
Advice to invent household employees Suggesting that you claim wages paid to “household employees” or fictitious workers, then claiming credits (e.g. sick/family leave) for wages never actually paid. False statements about employment. Risk of detection, large penalties, criminal charges.
Misleading use of obscure IRS forms Advice like using Form 8944 (Preparer e‑file Hardship Waiver Request) to get refunds or avoid tax bills, when that’s not what the form is for. Posts suggesting unusual uses of such forms. These are forms intended for specific technical/administrative use; misusing them is fraudulent.
Misrepresentations by untrained “tax influencers” Influencers or “tax gurus” giving advice out of misunderstanding, oversimplifying, or straight‐misleading for clicks (“get rich quick,” etc.). Some of this is disinformation rather than direct fraud. Even if not criminal, following wrong advice can lead to wrong filings, penalties, audits, lost refunds. If advice is bad enough it can be part of an abusive tax return.

What Are The Dangers


  • Legal Risk: Claiming credits or deductions you’re not eligible for is illegal. Penalties, interest, audit risk, possible criminal liability in serious cases
  • Financial Risk: Even a “free refund” becomes expensive when it must be paid back with penalties
  • Identity / Privacy Risk: Some scams require providing personal info (SSN, etc.) to unverified people, which can lead to identity theft.
  • Reputation / Credibility Risk: If you use shady preparers, your future returns may be more scrutinized.


Red Flags To Be Cautious Of:


  • Promises of large refunds with little detail, or claims that “everyone qualifies.”
  • Advice that sounds too good to be true.
  • Advice from non‑credentialed people or people who can’t explain the underlying tax law.
  • Use of unusual or obscure forms in ways that don’t make sense.
  • Claims that credits or write‑offs are “secret” or hidden; that the IRS doesn’t want you to know.
  • Someone asking for personal info up front, or charging based on refund amounts rather than services rendered.


How is the IRS helping to combat this issue:


  • The IRS has included "Taking tax advice on social media" in its “Dirty Dozen” list of scams.
  • IRS and partners are monitoring hashtags and social media content to track misinformation.
  • They’re issuing alerts saying don’t rely on casual advice from social media; use IRS.gov, certified professionals.

How The Taxpayer Can Protect Themselves:

  • Use trusted sources: official government guidance (IRS site), certified tax professionals.
  • Double check any claim you see. If someone is saying “do this, get $$$ refund,” see if the IRS has a page or FAQ about it.
  • Don’t trust someone just because they have lots of followers. Credentials matter.
  • Be cautious giving personal info to anybody over social media.
  • If claiming credits or deductions, keep good documentation.
  • If something seems shady, get a second opinion (perhaps from a licensed preparer) before filing.