Bookmark and Share

IRS.gov Banner
IRS Newswire September 8, 2025

News Essentials

What's Hot

News Releases

IRS - The Basics

IRS Guidance

Media Contacts

Facts & Figures

Around The Nation

e-News Subscriptions


The Newsroom Topics

Multimedia Center

Noticias en Español

Radio PSAs

Tax Scams

The Tax Gap

Fact Sheets

IRS Tax Tips

Armed Forces

Latest News Home


IRS Resources

Contact My Local Office

Filing Options

Forms & Instructions

Frequently Asked Questions

News

Taxpayer Advocate

Where to File

IRS Social Media


Issue Number:    IR-2025-90

Inside This Issue


IRS assesses $162 million in penalties over false tax credit claims tied to social media

IR-2025-90, Sept. 8, 2025

WASHINGTON — The Internal Revenue Service is alerting taxpayers 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. These scams have led thousands of taxpayers to file inaccurate or frivolous returns, often resulting in the denial of refunds and steep penalties.

Since 2022, the IRS has seen a surge in questionable refund claims fueled by misleading social media posts and bad actors posing as tax experts. Many of the posts falsely claim that all taxpayers are eligible for credits they do not actually qualify for, such as those meant for self-employed individuals or businesses. The IRS routinely publishes and updates a list of frivolous positions on IRS.gov that could lead to the imposition of penalties.

“These schemes are not only misleading but can cost taxpayers dearly,” said James Clifford, IRS Director Return Integrity and Compliance Services. “People who follow this advice could end up with rejected claims and a penalty of up to $5,000 in addition to any other penalties that might apply. So far, the IRS has imposed over 32,000 penalties costing taxpayers more than $162 million. It’s in the taxpayer’s best interest to stay informed.”

How to spot these scams

These scams often have common traits:

  • Social media posts that claim everyone qualifies for certain tax credits.
  • Promises of “easy” or “fast” refund with minimal documentation.
  • Instructions to file amended returns, even if you did not originally qualify for the credits.
  • Encouragement to ignore IRS letters or respond with false information.

What happens when a taxpayer falls for a scam

Taxpayers who submit false claims may face serious consequences:

  • Delayed refunds.
  • Denied refund claims.
  • A $5,000 civil penalty under Internal Revenue Code Section 6702 for filing a frivolous return.
  • Subject to further IRS examination and enforcement action.

What taxpayers can do if they are targeted

Taxpayers who believe they have been misled or filed an incorrect return should:

If you suspect a tax scam, report it to the IRS by emailing [email protected] or file a complaint with the Treasury Inspector General for Tax Administration (TIGTA).

Stay informed

The IRS urges all taxpayers to be cautious when relying on social media posts. Always verify claims with credible sources or consult a qualified tax professional.

For the latest updates on tax scams and IRS warnings, visit Tax Scams. In addition to IRS.gov, the IRS routinely publishes helpful information on IRS Social Media. Follow @IRStaxsecurity on X for scam awareness information.



Back to Top

FaceBook Logo  YouTube Logo  Instagram Logo  Twitter Logo  LinkedIn Logo


Thank you for subscribing to the IRS Newswire, an IRS e-mail service.

If you know someone who might want to subscribe to this mailing list, please forward this message to them so they can subscribe.

This message was distributed automatically from the mailing list IRS Newswire. Please Do Not Reply To This Message.


This email was sent to [email protected] by: Internal Revenue Service (IRS) · Internal Revenue Service · 1111 Constitution Ave. N.W. · Washington, D.C. 20535 GovDelivery logo