We’ve all seen them. Those viral social media tax “hacks” that promise massive refunds with little effort. Someone’s cousin’s friend supposedly got $15,000 back using “one weird trick.” The comments are full of people swearing it worked for them too.
Don’t fall for it.
The IRS recently announced it has issued $162 million in penalties against more than 32,000 taxpayers who followed bogus advice they found on social media. That’s a lot of people who thought they’d found a shortcut only to end up with denied refunds, fines, and in some cases, audits.
Why This Matters to You
Scams often center around misusing real tax credits, like the Fuel Tax Credit or Sick and Family Leave Credit and claiming “everyone qualifies.”
The truth? Only certain industries or circumstances qualify.
If you run a restaurant, construction company, farm, or manufacturing shop in Kansas, you may have legitimately qualified for certain pandemic-era credits. But scammers are pushing people to file amended returns or claim benefits they never earned. That’s not clever planning, it’s fraud.
The Red Flags to Watch For
Be on alert if you see posts that:
- Claim everyone qualifies for a tax credit.
- Promise fast refunds with minimal paperwork.
- Tell you to file amended returns even if you didn’t originally qualify.
- Suggest you ignore IRS letters or respond with false information.
Some schemes go further, advising people to make up fake W-2s or claim sick leave credits that expired years ago. Remember: that’s not a “life hack.” That’s tax fraud.
What Happens If You Fall for It
The consequences are real:
- Your refund gets denied.
- You could face a $5,000 penalty for a frivolous return.
- The IRS may audit other years of your taxes.
- In severe cases, you could face criminal charges.
Where to Actually Get Tax Advice
Real tax strategy isn’t about hacks, it’s about making the rules work for your situation.
- Start with IRS.gov for accurate info.
- Work with a CPA or tax professional who understands your industry.
- Be skeptical of anyone guaranteeing refund amounts before reviewing your actual numbers.
If it sounds too good to be true, it probably is.
Already Filed Something You’re Worried About?
Don’t panic, but don’t ignore it either.
- File an amended return using Form 1040-X if you made a mistake.
- Respond promptly to any IRS letters.
- Get help from a reputable tax professional.
The IRS is far more lenient with people who correct issues voluntarily than with those who wait to get caught.
The Bottom Line
If you’ve got questions about tax credits you might qualify for, or you’re worried about something you’ve already filed, let’s talk. We’d rather help you get it right the first time than see you in our office with an IRS penalty notice.
