I’ve been warning friends, colleagues, and clients for years about the risks of relying on self-proclaimed online accounting and tax experts.
These individuals often have no formal training, no CPA/EA license, and no accountability, yet their posts on TikTok, Instagram, or other platforms spread like wildfire. Unfortunately, people believe them, and the consequences fall on taxpayers, not on the so-called experts.
The IRS just reiterated this point in a recent update:
– Questionable refund claims, such as fuel tax credits or sick/family leave credits, have exploded since 2022.
– Over 32,000 penalties totaling $162 million have already been imposed.
– Filing a frivolous return can lead to penalties up to $5,000 — not to mention audits and interest charges.
Here’s the reality: those giving bad advice online don’t face the penalties. You do.
Red Flags to Watch For
– “Everyone qualifies” for a certain credit.
– “Fast and easy” refunds with little to no paperwork.
– Encouragement to file amended returns you don’t qualify for.
– Advice to ignore IRS notices.
What To Do Instead
– Use IRS.gov for official guidance.
– Consult a licensed professional (CPA, EA, or tax attorney) who is bound by ethical standards.
– If you’ve already been misled, file an amended return (Form 1040-X) and respond to IRS letters promptly.
At TrimnerBeckham PLLC, we believe tax compliance is not a game, and taxpayers deserve sound, professional advice, not social media gimmicks. Protect yourself and your nonprofit from unnecessary penalties by relying on qualified experts who are accountable to you and to the law.
What do you think? Have you noticed more “tax hacks” floating around online lately?
