The IRS is constantly notifying taxpayers about scams that are circulating, in addition to releasing its annual “Dirty Dozen” list of tax scams. Recently, there has been an increase in the amount of bad tax advice going around on social media. Everyone needs to be careful about what they read on social media, but especially when it comes to tax advice.
The tax scam in question on social media recently is a non-existent “Self Employment Tax Credit” and it is misleading taxpayers into filing false claims. It is being promoted as a way for self-employed people and gig workers to get big payments for the COVID-19 pandemic period. Similar to other misleading marketing around the Employee Retention Credit, there is inaccurate information suggesting many people may qualify for the tax credit and payments of up to $32,000 when actually, they do not.
In reality, the credit being referenced to on social media is not called the “Self Employment Tax Credit,” it is a much more limited credit called Credits for Sick Leave and Family Leave. The IRS is closely monitoring and reviewing claims made under this credit, and many people do not qualify. People who were self-employed can claim Credits for Sick Leave and Family leave only for limited COVID-19 related circumstances in 2020 and 2021, it is not available for 2023. In addition, self-employed workers need to meet a variety of technical reasons that didn’t allow them to work.
Always talk with your TFG CPA regarding any credits or deductions you think you may qualify for, and especially if you see these credits or deductions on social media. Not only can they help you find out if they are real, they can help you properly file for these credits and deductions if you qualify. We can help you avoid the IRS “frivolous” return fee of $5,000.
Also keep an eye out for FinCEN scammers. These people will ask for your personal information in order to “file” on your behalf. Make sure you are working with a trusted resource for any FinCEN filings. Our TFG Concierge Corporate Services can take care of this for you, as well as ensure that your information is safe, and properly filed.
