Taxes scam: taxpayers unknowingly file fake credit claims

In recent months, the IRS has observed a noticeable increase in fraudulent activities on social media platforms, where scammers entice taxpayers into making False claims regarding tax credits. This illicit activity has gained traction particularly as the holiday shopping season aligns with the upcoming tax season, making taxpayers more susceptible to deceptive tactics. The agency has specifically outlined various scams, including the misuse of Form 7202, which was only valid for certain COVID-19 related circumstances in 2020 and 2021. Fraudsters mislead taxpayers into believing that a non-existent tax credit is available, urging them to improperly claim benefits that they do not actually qualify for. Additionally, the IRS highlighted scams related to fuel tax credits, emphasizing that most individual taxpayers are ineligible for such benefits, which are primarily designed for specific businesses like farming that operate with certain fuel types. There are also misleading claims circulating on social media suggesting that taxpayers can deduct their entire wages by classifying them as necessary expenses or compensation for services. These assertions are categorically False and represent a significant misinterpretation of tax regulations. As indicated by IRS Commissioner Danny Werfel, schemes that seem too good to be True are often fraudulent. Social media has become a breeding ground for influencers who promote inaccurate information about tax deductions solely for their own gain and followers. This not only poses a risk to taxpayers' finances but also to their identities. The agency has received reports of numerous taxpayers falling victim to these scams, with some claims amounting to five-figure sums. The IRS cautions individuals to remain vigilant and consider professional guidance or official IRS channels for reliable tax information, especially in light of the rising scams. As the tax filing season approaches, the agency warns that it is crucial for taxpayers to safeguard their personal information against potential identity theft. The agency also raised alarms about another prevalent scam involving phishing messages that appear to be from legitimate delivery services, which often compel individuals to click on links that could compromise their sensitive information. In light of these developments, the IRS urges the public to exercise extreme caution while engaging online, particularly with links and messages related to deliveries or tax-related claims that seem dubious. By being prudent and informed, taxpayers can better protect their financial assets and minimize the risk of fraud during this critical time of year.