The IRS recently said it has imposed over $162 million in penalties on taxpayers for fraudulent tax credit claims promoted through social media.
These claims involve illegitimate credits like the Fuel Tax Credit and Sick and Family Leave Credit, leading to thousands of inaccurate returns.
“These schemes are not only misleading but can cost taxpayers dearly,” said James Clifford, IRS director of return integrity and compliance services. "People who follow this advice could end up with rejected claims and a penalty of up to $5,000 in addition to any other penalties that might apply . . . It's in the taxpayer's best interest to stay informed."
The IRS has issued over 32,000 penalties, warning that taxpayers could face up to a $5,000 penalty for filing frivolous returns. The agency urged taxpayers to stay informed and avoid these misleading schemes.