How to Protect Yourself From Fraudulent Tax Schemes on Social Media

Fake tax schemes are causing real stress and financial problems for American taxpayers. There are many who don't understand the danger or don’t know what to look for to protect themselves. Here's how to spot these scams in your feed and what you can do about them. 

Watching out for social media tax schemes isn’t the only way you can protect your finances. Connect with Farm Bureau if you would like to work with a professional who can help you plan for your future.

Signs of Tax Refund Schemes in Social Media

Tax avoidance schemes, or tax refund schemes, usually have certain claims that can be signs of a scam. Look for some of these red flags:

• They say things like “everyone qualifies.”
• They promote misuse of common credits like the Fuel Tax Credit, the Sick and Family Leave Credit or Household employment taxes.
• They say that you qualify for credits that are designed for businesses or self-employed people.
• They claim your refund will be fast or easy.
• They say you need little or no documentation to qualify.
• They instruct you to file an amended tax return if you didn’t qualify for a credit.
• They send you a message through social media claiming to be the IRS.
• They tell you that you shouldn’t respond to letters from the IRS or you should respond with false information.
• They ask you to pay a large fee, or they charge a fee based on the amount of your refund.
• They call you and offer help filing claims after a disaster. The IRS will never call you without notifying you by mail first.
• They offer to help you set up an online IRS account.

If you think something doesn’t look right, you can check the IRS list of tax scams. You can also follow the IRS on various social media sites so you’re up to date on current scams. But be aware that you could come across a scam that doesn’t appear in these places.

What Happens if You Fall for a Scam

If you follow a scammer’s advice and submit a false claim to the IRS, you should amend your tax return as soon as you can. You should also respond to any notices or letters you get from the IRS. It’s a good idea to get help from a tax professional.

Penalties can be steep for filing a false claim. You could face:

• Delays in getting the refunds you qualify for
• Denials of your refund
• A $5,000 penalty for filing a frivolous return
• Other IRS enforcement

What to Do if You Think You Spot a Scam

If you come across a tax scheme on social media that seems suspicious, talk to a tax professional to verify it before submitting anything to the IRS.

You can report a tax scam to the IRS by sending an email to phishing@irs.gov, and you can file a complaint with the U.S. Treasury Inspector General for Tax Administration by calling their Office of Investigations hotline at 1-800-366-4484.

Talk to a Professional for Advice

Tax scams aren’t the only threat to your finances; money mistakes cost Americans an estimated $948 last year. Connect with Farm Bureau so you can make sure your money is working to help provide you and your family with the future you’re envisioning.