Tax season has begun in the United States. It is not our favourite season, but we do not want anyone to have a bad time. As a result, the IRS (Internal Revenue Service) has issued a serious warning: be wary of tax-related advice from social media influencers, as it may lead to unintentional tax fraud.
It may appear to be a crude warning, but thousands of people fall victim to schemes promoted by influencers and online ‘experts’ who claim to know shortcuts to paying less tax or receiving larger refunds.
Never trust them! This type of advice can not only cause financial problems, but it may also result in criminal charges. And neither of us wants that. We’ll explain everything you need to know so that nothing gets in your way this tax season!
We’re going to list the most common mistakes we see on social media.
W-2 fraud
One of the most common social media scams involves inflating income and changing information on the W-2 form in order to receive a larger tax refund. Some people even falsify information about their employer or the taxes withheld in order to receive more money from the IRS.
Fake form 7202
This document allows certain self-employed workers to claim medical or family leave credits (particularly sick leave). However, some people on social media have encouraged the use of the form by people who are ineligible, so be cautious, as you may be committing a crime.
False returns from household employees (Schedule H)
Some individuals file returns claiming to have employees and report fictitious payments to receive tax credits. Remember that this type of fraud is easy to detect and can result in severe penalties.
Form 8944 fraud
This document is intended for professional tax preparers who want to request an exception to file returns on paper rather than electronically.
What happens if I commit tax fraud?
The IRS is clear in its warning: falling for these scams can result in serious legal consequences, depending on the severity of the violation. The most common fines and consequences include:
What happens if I commit tax fraud?
The IRS is clear in its warning: falling for these scams can have serious legal consequences, although everything depends on the severity of the violation. The most common fines and consequences are:
- Pensions of up to $5,000 for filing false information.
- Audits and detailed reviews of past returns.
- Criminal charges and possible prison time in cases of serious fraud.
If the IRS determines that someone has intentionally committed fraud, the penalties can be devastating, including seizure of bank accounts and assets!
Avoiding problems with the IRS isn’t that difficult.
We’ll go over some strategies for avoiding malicious temptations. The most straightforward approach is to obtain information through official IRS channels. Although social media may appear to be useful, seek advice from a qualified professional or visit the IRS’s official website.
On the other hand, never assume you’ll receive inflated refunds; it’s the IRS!
Report suspicious activity (whether you see it online or someone offers you a trick) and double-check your information before filing your return to ensure that everything is correct.
The IRS, like all public services, is created by everyone. Furthermore, it is extremely difficult not to catch someone attempting to cheat the system. Let’s be honest.