Warning by the IRS on Bad Social Media Advice

Even with ongoing warnings from the IRS, a lot of taxpayers are still getting caught up in tax scams making the rounds on social media. These scams usually promote fake claims about things like the Fuel Tax Credit, Sick and Family Leave Credit, or other supposed tax breaks. IRS Director James Clifford warns that falling for these schemes “can cost taxpayers dearly.” Thousands have been misled into filing incorrect returns, often leading to denied refunds, hefty penalties, and more headaches. Since 2022, the IRS has handed out over 32,000 penalties related to these scams, adding up to more than $162 million.

What To Know

The IRS is warning taxpayers about a wave of fraudulent schemes spreading across social media that encourage the improper use of tax credits, such as the Fuel Tax Credit and the Sick and Family Leave Credit.

These scams have already led thousands of people to file inaccurate or frivolous returns, often ending in denied refunds and costly penalties.

Since 2022, the agency has tracked a sharp rise in dubious refund claims driven by misleading online posts and self-proclaimed "tax experts." Many of these posts wrongly suggest that every taxpayer qualifies for credits, even those that apply to specific tax situations.

The Internal Revenue Service has announced a raft of changes for the 2025 tax filing season to help combat scams and fraud, following false claims on social media.

The new changes come ahead of the opening of the tax season on Monday, January 27.         

Fuel Tax Credits

Starting with the 2024 tax year, anyone looking to claim the Fuel Tax Credit (FTC) on their Form 1040 will need to include a new form with their return. The FTC applies to certain types of fuel—like gasoline, aviation gasoline, undyed diesel, or undyed kerosene—that are used for qualified, non-taxable purposes.

But keep in mind: this credit is only available to individuals who own or operate a business and meet specific requirements, such as running a farm or purchasing aviation fuel for qualified use.

The new form, called "Statement Supporting Fuel Tax Credit (FTC) Computation – 1," is included in the instructions for Form 4136. It asks for specific information like the make, model, and type of equipment or vehicle the fuel was used in. You’ll need to fill it out and submit it along with Form 4136 and your Form 1040.

Be careful, though, claiming this credit incorrectly can be costly. The IRS may impose a penalty of $5,000 per person, which means up to $10,000 for a married couple filing jointly.

How To Spot Tax Scams

Tax scams tend to follow the same script, which means they’re easier to spot once you know the warning signs. The IRS has flagged a few common red flags, like social media posts claiming that everyone qualifies for certain tax credits, or shady promoters promising “easy” or “fast” refunds with little to no paperwork.

Some of these scams even go as far as telling people to file amended returns, even if they don’t actually qualify for the credits, and to ignore IRS letters or respond with false information.

Getting caught up in one of these schemes can lead to serious trouble, so it’s important to stay alert and informed.

What happens when a taxpayer falls for a scam

Filing false tax claims can lead to some serious consequences, including:

• Delays in getting your refund

• Having your refund claim denied altogether

• A $5,000 civil penalty for filing a frivolous return (yep, that’s under IRS Code Section 6702)

• And possibly more IRS scrutiny, including audits or other enforcement actions

Bottom line: it’s just not worth the risk.

What taxpayers can do if they are targeted

If you think you’ve been misled or may have filed your tax return incorrectly, here’s what you should do:

• File an amended return as soon as possible using Form 1040-X

• Don’t ignore any letters or notices from the IRS—respond to them right away

• Get help from a trusted tax professional or check out the official resources at IRS.gov

Taking action quickly can help minimize any potential issues.

If you suspect a tax scam, report it to the IRS by emailing phishing@irs.gov or file a complaint with the Treasury Inspector General for Tax Administration (TIGTA).

Stay informed

The IRS is encouraging everyone to be careful when it comes to tax advice on social media. If you see a post making big claims, double-check it with a reliable source or talk to a qualified tax professional before taking any action.

To stay up to date on the latest scams and IRS alerts, visit the Tax Scams page on IRS.gov. You can also follow the IRS on social media—@IRStaxsecurity on X is a great resource for scam warnings and helpful tips.