The seventh day of the Dirty Dozen warns taxpayers to think twice before taking advice on social media that could lure them into compromising tax situations. Misleading tax information could be posted on social media, and the IRS has recently seen several examples.
This could involve common tax forms such as W-2’s or others like Form 8944 that is aimed at a very limited and specialized group of taxpayers. Both scams encourage taxpayers to submit false, inaccurate information in hopes of getting a tax refund.
IRS Commissioner Danny Werfel said “The IRS continues to see a lot of inaccurate information that could get well-meaning taxpayers in trouble. People should remember that there is no secret way to fill out a form and simply get a larger refund that they aren’t entitled to”.
Bad advice and fraudulent form filing has been seen across social media this tax filing season. It’s unfortunate when the wrong advice gets into the hands of honest taxpayers, so the IRS is warning taxpayers to think twice before trusting internet advice. Whether it’s a fraudulent tactic promoted by scammers or a false tax-related scheme trending across social media platforms, be wary of trusting advice found online.
The common theme across social media tax scams seems to be convincing people to use legitimate tax forms for the wrong reasons. Two recent schemes found online are:
- Form 8944 (Preparer e-file Hardship Waiver Request) fraud. While Form 8944 is a legitimate IRS tax form, it's intended for a targeted group of tax return preparers who are requesting a waiver so they can file tax returns on paper instead of electronically. It is not in a form the average taxpayer can use to avoid tax bills.
- Form W-2 fraud. In this W-2 scheme, scam artists suggest people make up large income and withholding figures as well as the employer its coming from. Scam artists then instruct people to file the bogus tax return electronically in hopes of getting a substantial refund.
It’s always smart to keep in mind that if something is too good to be true, it probably is. You can use the IRS social media accounts or other State of Colorado Government accounts to verify information.
To report fraud, scams, or schemes you can visit our webpage at https://tax.colorado.gov/tax-fraud-prevention for more information.