The Internal Revenue Service (IRS) has warned taxpayers about a rise in fraudulent tax schemes circulating on social media.

Why It Matters

According to the agency, thousands of taxpayers have filed inaccurate returns after following misleading posts and bad actors posing as tax experts online. The problem prompted more than $162 million in penalties and 32,000 enforcement actions, the IRS reported.

False and inaccurate returns risk well-meaning taxpayers being on the hook for financial penalties.

What To Know

The IRS is warning taxpayers about a wave of fraudulent schemes spreading across social media that encourage the improper use of tax credits, such as the Fuel Tax Credit and the Sick and Family Leave Credit.

These scams have already led thousands of people to file inaccurate

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