he IRS has cautioned individuals about a rise in fraudulent tax schemes on social media that misuse credits such as the Fuel Tax Credit and the Sick and Family Leave Credit. The scams typically appear as posts promising guaranteed refunds, urging amended returns without justification, or advising individuals to ignore IRS notices and respond with false details. These schemes attempt to exploit trust by suggesting fast refunds with little documentation. Consequences of participating include delayed or denied refunds, a $5,000 penalty under Code Sec. 6702, and possible IRS examinations or enforcement actions.
The IRS urged individuals to act quickly if misled. Steps include filing Form 1040-X, Amended U.S. Individual Income Tax Return, responding promptly to IRS correspondence, and consulting a trusted tax professional. Suspected scams should be reported to phishing@irs.gov or the Treasury Inspector General for Tax Administration.
