There is still a lot of false information on the internet, and taxpayers seem to be believing it. People who pay taxes were warned by the Internal Revenue Service (IRS) about false information going around on social media about a tax credit that people were not using.
The agency said that this false information makes it sound like self-employed and gig workers can get a big tax break during the COVID-19 pandemic. The tax break is said to be as much as $32,000 for some people. The IRS made it clear that this claim is not true.
When asked about the claim, IRS Commissioner Danny Werfel said, “This is another false social media claim that’s leading honest taxpayers to believe they’re due a big payday.” People shouldn’t believe crazy things they read on social media.
Before paying someone to file these claims, taxpayers should check with a reputable tax expert to see if they fall into one of the very few categories that allow them to.
Does the IRS recognize this tax credit?
The IRS made it clear that while there are some tax breaks for sick and family leave, they are very limited and can only be used by a certain group of self-employed people in 2020 and 2021 who had to stop working to care for people who were sick with COVID-19 or who were stuck at home because of the virus and lost their income.
The agency said in a statement, “The IRS has seen thousands of questionable claims come in where it appears taxpayers are claiming credits for which they are not eligible. This has caused refunds to be delayed and taxpayers to have to show they have legitimate documentation to support these claims.”
People who need help with their taxes should definitely get professional help instead of relying on online information that hasn’t been checked out and is only meant to get clicks and not teach people anything. Tax scammers take advantage of people’s hopes all the time, and they try to use the tax system’s complexity to make people think there are hidden ways to get a big refund.
All of these scams show how important it is to check the tax return carefully for errors before sending it in and to only listen to the advice of a real tax expert, not someone trying to make quick cash or a sketchy social media source.
The IRS made it clear that the “Self Employment Tax Credit” is just the latest false claim about a tax break that has been going around on social media. In the past, people have also been given false information about fuel tax credits and household employment taxes.
These are only available to very small groups of people who meet very specific criteria, but they were sold to everyone as if they were a government secret that they didn’t want you to know.
“The IRS is seeing some similarities between the marketing of this ‘Self Employment Tax Credit’ and the aggressive marketing of the ‘Employee Retention Credit,'” the IRS said. “Some people have seen these two technical credits as a way for regular taxpayers to get a big government check, which is not true.”
In reality, these credits are very limited, and people must meet a lot of complicated requirements before they can get them.
Taxpayers should be very careful when looking at tax-related information on social media, as the IRS’s alert makes very clear. Giving people wrong information can cause a lot of problems, like waiting too long to get your refund or having to show a lot of paperwork to prove you are eligible for certain claims.
The government agency will always put up new, clear information on their website so that everyone can see it. If you’re not sure about something, you can call an expert and they’ll help you understand it so that your tax returns are correct.
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