The IRS just issued an urgent alert (IR-2025-90, September 8, 2025) about a growing number of fraudulent tax schemes circulating on social media that promote the misuse of credits such as the Fuel Tax Credit and the Sick and Family Leave Credit. IRS assesses $162 million in penalties over false tax credit claims tied to social media
The Real Numbers Are Terrifying: Since 2022, the IRS has imposed over 32,000 penalties, totaling $162 million, on taxpayers who fell for these social media scams.
How The Social Media Predators Hunt: These scams have led thousands of taxpayers to file inaccurate or frivolous returns, often resulting in the denial of refunds and steep penalties. The typical traits include posts that claim everyone qualifies for certain tax credits, promises of “easy” or “fast” refunds with minimal documentation, and instructions to file amended returns even if you didn’t originally qualify.
What This Means for Your Family: While you’re worried about The Collector sending official letters, social media predators are hunting your kids and grandkids with TikTok videos promising “free money” from fake tax credits.
The Underground Truth: Taxpayers face the possibility of rejected claims and a penalty of up to $5,000 for filing a frivolous return, plus other possible penalties.
Why This Matters Now: These scams spike during tax season, but they never really stop. The same families getting blindsided by legitimate IRS collection actions are also getting targeted by social media fraudsters.
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