Trouble Ahead: The Dangers of Social Media Tax Advice

One thing you can’t escape on social media? Advice. And it’s not just limited to the important stuff like the best way to shampoo your dog, flip a pancake, or solve climate change.

Now, while I’ve picked up some great tips on picking the perfect avocado, one thing you should never take from social media—tax advice.

Tax advice on social media might seem tempting, but it's a bad idea for one simple reason: taxes are incredibly specific and complicated. What works for one person’s tax situation might be a total disaster for someone else. There’s no one-size-fits-all when it comes to taxes.

If you follow the wrong advice, you could end up making costly mistakes—mistakes that could lead to real fines, penalties, or even an audit. Social media posts often oversimplify things, or worse, spread misinformation that sounds good but isn’t grounded in actual tax law.

And it's no secrets that there are also a lot of scams going on on social media. If there is a way to make you part with your money, tax situations is one of them.

IRS WARNINGS

The IRS regularly warns about misleading tax advice, especially those that circulate via social media. In its "Dirty Dozen" list of tax scams for 2025, the IRS highlights numerous deceptiion on social media that can lead to costly errors and penalties for taxpayers.

The advice found on social media, where people and influencers often lack proper tax knowledge, can encourage risky financial shortcuts. These tax moves could mislead taxpayers into committing critical mistakes, such as claiming unlawful deductions or worse like falling victim to identity theft.

Social media advice, while seemingly harmless, often lacks the necessary expertise and can lead to serious financial consequences.

Here are some of the major tax warnings and scams the IRS has recently published in 2025:

1. Fake Charitable Contributions – Some individuals may encourage others to claim false or inflated charitable deductions to reduce taxable income.
2. Unreported Income – A scam where people are advised to not report all their income in an attempt to lower their tax bill.
3. Fake Tax Credits – Fraudulent claims for credits like the Earned Income Tax Credit (EITC) that do not meet eligibility requirements.
4. Phishing Schemes – Fraudsters impersonating the IRS via email or social media to steal personal information or money.
5. Tax Identity Theft – Scammers stealing personal information to file false tax returns and claim refunds.
6. Misleading Tax Shelters – Fraudulent tax shelters promoted as ways to reduce tax liability, often with risky or illegal investments.
7. False Claims for Business Deductions – Encouraging individuals to claim business expenses that do not exist or are exaggerated.
8. Fake Tax Refunds – Scammers using stolen personal information to file fraudulent returns and claim refunds.
9. Fraudulent Tax Preparers – Some individuals may promote "tax preparers" on social media who promise huge refunds but use dishonest practices to do so.
10. Tax Payment Scam Calls – Fraudsters impersonating IRS agents on social media and phone calls, demanding immediate payment or threatening jail time.
11. Online Auctions – Advising people to falsely claim deductions for non-existent auction sales to avoid paying taxes.
12. Cryptocurrency Scams – Tax scams involving cryptocurrencies, where taxpayers are misled into reporting incorrect amounts or falling for fraudulent investment schemes.

These are just a few of the dangers circulating online that could put you at risk. If you encounter any tax advice on social media, make sure to verify it through reliable sources.

When it comes to your taxes, it’s always best to rely on trusted, official resources. If you are ever unsure about a tax issue, the IRS website is a good source for accurate information.

And if you find that your tax issues are too complicated to handle on your own, don’t hesitate to contact a professional who can guide you through the process.

Reach out to Ovation Tax Group at for expert help and support with all your tax concerns. Right now, you can receive a free consultation about your tax issues by calling 888-921-3559. Simply visit ovationtaxgroup.com to schedule your appointment.