IRS issues warning: Avoid this or you could face criminal charges

The Internal Revenue Service has long warned about scams targeting America’s taxpayers.

Ranging from email schemes to misleading information about tax credits, these phony trends peak during filing season as people prepare their tax returns ahead of the April 15 deadline. However, these scams can occur throughout the year as fraudsters look for a way to steal money, personal information or data, the tax agency said.

READ MORE: Tax refunds won’t be given to these people, IRS says

While scams are always an problem, the IRS is issuing a warning about a “growing concern” during the 2025 tax season.

Incorrect tax information spread on social media can mislead otherwise honest taxpayers with bad advice, potentially leading to identity theft, tax problems or even criminal charges.

“Social media platforms routinely circulate inaccurate or misleading tax information, including on TikTok where people share wildly inaccurate tax advice. Some involve urging people to misuse common tax documents like Form W-2,” the IRS said in a statement.

The ramifications of falling for bogus information can be serious. Taxpayers who knowingly file fraudulent returns based on the bad advice could face significant civil penalties or, in some cases, criminal charges.

Instead of following the latest social media tax trend, people should get their information from tax professionals, the IRS or other trusted sources.

Bogus self-employment tax credit

One of the most common social media scams seen this year deals with a non-existent “Self Employment Tax Credit,” the IRS said.

Social media users market it as a way for self-employed people and gig workers to score big payments for the COVID-19 pandemic period. Other misleading marketing deals with the Employee Retention Credit, with inaccurate information that many people qualify for tax credits and payments of up to $32,000 when they actually do not.

The reality, the tax agency said, the underlying credit being referred to in social media is not called the “Self-Employment Tax Credit,” but is a much more limited and technical credit called the Credits for Sick Leave and Family Leave.

“Many people simply do not qualify for these credits, and the IRS is closely reviewing claims coming in under this provision, so taxpayers filing claims do so at their own risk,” the IRS said.

Other common tax scams:

Here are some other common tax scams people should be aware of:

Email phishing scams

These include fake communications from scammers posing as legitimate organizations, including the IRS, state tax agencies and tax software companies. These messages arrive in the form of unsolicited texts or emails to lure unsuspecting victims into providing valuable personal and financial information that can lead to identity theft. These include phishing emails and smishing messages sent via text.

To be safe, never click on an unsolicited communication.

Individual inline account help scams

Swindlers post as “helpful” third parties and offer help to create a taxpayer’s IRS Individual Online Account at IRS.gov. Setting up an individual IRS.gov account is actually easy and free and there’s no need to pay someone for their help or give them access to your information.

Fake charities

These bogus charities crop up throughout the year but especially when there is a crisis or natural disasters. Scammers set up these fake organizations to take advantage of the public’s generosity. They seek money and personal information, which can be used to further exploit victims through identity theft.

Taxpayers who give money or goods to a charity might be able to claim a deduction on their federal tax return if they itemize deductions, but charitable donations only count if they go to a qualified tax-exempt organization recognized by the IRS.

You can see more of the common scams seen by the IRS here.