Beware of Tax Advice on Social Media – IRS Cracking Down

As tax season begins, the IRS is increasing audits due to misleading tax advice circulating on social media. Many influencers promote so-called “tax secrets,” claiming you can write off pets, deduct personal expenses, or claim extra credits to maximize refunds. While some deductions and credits exist, misinterpreting tax laws can lead to frozen refunds, penalties, or audits.

IRS targeting misleading tax claims

The IRS has reported a rise in fraudulent deductions and incorrectly claimed credits, leading to increased scrutiny. In 2024 alone, over 500,000 tax returns were frozen for review due to questionable claims. A key example is the Earned Income Tax Credit (EITC), which many taxpayers fail to claim, while others attempt to claim it incorrectly.

Common tax mistakes to avoid

• Writing off personal expenses like pets or vacations
• Claiming deductions without proper documentation
• Misclassifying Venmo, PayPal, or cash app transactions
• Overstating business expenses

How to file your taxes correctly

Instead of relying on unverified social media advice, seek guidance from a trusted tax professional. DeLaney & Co. CPA can help ensure accurate tax filing, maximize legitimate deductions, and keep you compliant with IRS regulations.