The IRS released its annual Dirty Dozen tax scams, and one of the threats on the list for 2025 is bad social media tax advice.1 The IRS pointed out that “social media platforms routinely circulate inaccurate or misleading tax information,” (what, really?) “including on TikTok where people share wildly inaccurate tax advice.” For example, the advice being peddled by social media influencers includes:2
- Oh, look. It’s Mike Giangrande’s favorite topic: anyone and everyone can claim their car as a business expense.
- Use tax software to create a fake W-2 with large income and withholding amounts, plus a fictitious employer.
- Claim your 4-pound chihuahua as a guard dog.
- Invent household workers and file Schedule H to claim fake sick and family medical leave wages.
- Anyone who’s self-employed can take the “self-employment tax credit” of up to $32,000. (The actual credit applied only to narrow COVID-19–related circumstances in 2020 and 2021.)
The frustrating thing is that when the IRS catches up with the taxpayers who fall for these scams, the taxpayer is the one liable for the tax and penalties; the influencers generally are not held accountable. However, the IRS does encourage reporting anyone promoting an abusive tax scheme by filing a Form 14242, Report Suspected Abusive Tax Promoters or Preparers.
