Beware the Viral Tax “Hack”: What the IRS Wants You to Know

It starts with a post that sounds convincing: a quick “loophole” for a bigger refund, a step-by-step thread from someone calling themselves a tax pro, hundreds of comments saying it worked. Then the letter from the IRS arrives. The agency is warning taxpayers about exactly these social media schemes – and they’re showing up on the IRS’s 2025 “Dirty Dozen” list for a reason.

How the rumor mill turns into risk

Scammers use social platforms to pose as experts and push bad advice. Common tells: they say everyone qualifies for a credit, promise fast cash with little documentation, tell you to file an amended return to grab money you “missed,” and even suggest you ignore IRS letters.

The schemes getting traction:

Here are the fraudulent pitches being pushed, and why they’re wrong:

• Fuel Tax Credit: Posts claim that every taxpayer can take it. In reality, it’s meant for off-highway business and farm use.
• Sick and Family Leave Credit: Promoters recycle a pandemic-era benefit that applied only to self-employed individuals for 2020–2021. It is not currently available.
• “Self-Employment Tax Credit”: This one is fabricated – created to lure gig workers with the promise of a windfall.
• Overstated Withholding: The playbook here is filing with made-up income and withholding on a W-2 or 1099 to trigger a bogus refund.
• Why the fallout lands on you

Even if you were misled, you’re responsible for what’s on your return. The IRS can deny the refund, impose penalties, including up to a $5,000 civil penalty for a frivolous return, and increase your odds of an audit.

How to protect yourself right now

• Be skeptical of “too good to be true” promises.
• Verify claims on IRS.gov or talk to a trusted tax professional.
• Remember: the IRS will never initiate contact via social media to request personal or financial information.
• Don’t click links or download attachments from suspicious posts or unsolicited messages.
• Report suspected scams to phishing@irs.gov.

If you have already acted on bad advice

Fix it as soon as possible. You can file an amended return using Form 1040-X to correct mistakes and reduce potential penalties.