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The IRS warns of a scam involving false claims for self-employment tax credits from the COVID-19 pandemic.
IRS Issues Alert on Fake “Self Employment Tax Credit” Scam
The IRS has warned about a scam spreading on social media claiming that self-employed people and gig workers can get big payments for the COVID-19 pandemic. Some of these false claims say individuals could receive up to $32,000. In reality, the credit being talked about is the Credits for Sick Leave and Family Leave which were only available in 2020 and 2021 and do not apply to 2023 taxes. The scam involves using Form 7202 meant for people who couldn’t work due to COVID-19 to wrongly claim income credits earned as employees.
IRS Commissioner Danny Werfel warned that this misinformation tricks people into thinking they are due a large refund. He advised people to check with trusted tax professionals before paying anyone to file these claims. The IRS has seen similar misleading tactics before like those with the Employee Retention Credit which have caused delays and extra paperwork, according to the report of Marca.
(photo: LinkedIn)
Protect Yourself from Tax Scams: IRS Highlights Key Warning Signs in Annual Dirty Dozen Series
As tax season nears, the IRS is stressing the need to be careful about scams in its annual Dirty Dozen series. Werfel reminded taxpayers that scammers use the complexity of the tax system to deceive people into seeking refunds they do not qualify for.
As tax season approaches taxpayers must remain vigilant and consult with qualified professionals to ensure they only pursue legitimate credits and avoid falling prey to fraudulent schemes.
