In an age when social media is becoming more of a source of financial and legal advice for millions of Americans, the IRS is issuing an unambiguous warning: TikTok is not your tax advisor.
From viral refund “hacks” to misleading deductions promoted by self-styled influencers, the IRS says bad tax advice circulating on platforms like TikTok, Instagram, and YouTube is not only inaccurate—it’s landing people in serious legal trouble. In response, the agency has made this issue a centerpiece of its 2025 compliance messaging.
The Rise of Viral Tax Advice—and the IRS’s “Dirty Dozen”
Each year, the IRS publishes a list of the most common tax scams targeting Americans. In 2025, a new—and modern—threat made the list: taking tax advice from social media.
According to the IRS, the internet is now awash in “wildly inaccurate” tax strategies that promise huge refunds, offer tricks to bypass income reporting, or suggest fake deductions to lower tax bills.
While many of these posts come from non-credentialed users, some are promoted by influencers with large followings—creating the illusion of trustworthiness. As the IRS bluntly stated, “Following social media tax advice can be a fast track to serious IRS trouble”.
The trend has become so severe that the IRS included social media misinformation as a standalone category in its Dirty Dozen tax scams list, placing it alongside long-standing threats like offshore shelters, fake charities, and phishing schemes (newburg.com).
Case Study: Fake W-2 Schemes Spread Online
A very clear example of social media’s impact on tax compliance emerged in early 2024, when thousands of TikTok users began following instructions on how to create fake W-2 forms in order to receive large, fraudulent tax refunds.
Using free W-2 generators and screenshots of previous returns as templates, some creators walked viewers step-by-step through the fraud process. Many taxpayers filed these returns using DIY tax software without realizing their information would be flagged as suspicious by the IRS.
The fallout has been swift. The IRS has since confirmed that thousands of refund claims stemming from these schemes have been frozen or flagged for investigation. In some cases, the agency is pursuing criminal charges for knowingly submitting false information.
“We’re seeing patterns where entire groups of returns are tied to TikTok trends,” said one CPA who flagged suspicious claims for review.
Who’s Behind the Advice?
A major problem, experts say, is that social media blurs the line between credible and unvetted sources. Influencers with no tax training often speak with absolute authority, offering what amounts to legal advice without licensing, oversight, or liability.
“Much of what’s going viral lacks even the basic foundation of IRS code knowledge,” said the Taxpayer Advocate Service, which issued its own warning to taxpayers in early 2025.
Some influencers monetize their content through affiliate links or product promotions, creating a financial incentive to prioritize clicks over accuracy. Others may unknowingly repeat bad information. Regardless of intent, the legal risk falls squarely on the taxpayer who files the return.
Why People Fall for It
The success of this misinformation speaks to a deeper issue: the U.S. tax code is complex, and official guidance is often difficult for laypeople to interpret. Taxpayers, especially younger or first-time filers, may gravitate toward short, confident videos that seem to “simplify” the process.
Social media posts often use flashy visuals, quick tips, or humor to draw viewers in. One viral TikTok claimed users could deduct vacation expenses by calling them business meetings. Another suggested everyone qualifies for the Fuel Tax Credit—without explaining the strict eligibility rules tied to off-highway vehicle use.
“These aren’t just innocent mistakes,” one CPA warned. “They’re strategic distortions designed to sound plausible to the uninformed” (bhcbcpa.com).
IRS Flags Additional Tax Scams Circulating on Social Media
According to the IRS, viral videos and influencer posts are promoting fraudulent strategies disguised as “hacks” or “loopholes,” often shared without any disclosure that the advice is unvetted, misleading, or outright false. The agency has identified several common scams:
- Misuse of the Fuel Tax Credit: This credit is intended for off-highway use (like farming or construction equipment), but videos suggest anyone can claim it, which is false and easily flagged by the IRS.
- Improper Sick and Family Leave Credit claims: Influencers promote this pandemic-era credit as still being available or broadly applicable, when in reality it’s restricted and no longer available to most filers.
- Fake business deductions: Some videos encourage people to invent side businesses to write off everyday expenses—such as vacations, clothing, or rent—as if they were business costs.
The common thread? These tactics are presented in a way that appears polished and authoritative, often with no disclaimer that the information is legally risky—or entirely false.
Even Slight Errors Can Cost You
The IRS also warns that not all misinformation results in fraud-level violations. But even small missteps—based on bad online advice—can trigger audits, interest, and penalties. Examples include:
- Claiming a home office deduction for a bedroom or kitchen table, without meeting the IRS’s exclusive-use requirement.
- Deducting personal vacations as business expenses simply by saying you “thought about work” on the trip or had a phone call while traveling.
- Trying to avoid 1099 reporting by asking clients or platforms to “pay you differently,” based on influencer videos that misinterpret IRS rules on self-employment income.
What starts as a small deduction might open your entire return to scrutiny. “These kinds of errors are easy for the IRS’s new AI-driven systems to detect,” warned one CPA.
The IRS Is Fighting Back—Online and Off
In an effort to stem the tide of bad advice, the IRS has ramped up its own online presence, promoting verified social media accounts and e-news alerts as reliable sources for tax information.
Still, the agency acknowledges that correcting misinformation is an uphill battle. “People are more likely to believe something if they hear it from someone they trust—even if that trust is based on charisma, not credentials,” said one former IRS official.
To that end, the IRS has warned that it may refer more false returns for criminal investigation and has emphasized the importance of working with licensed professionals—not influencers—when preparing taxes.
What Taxpayers Can Do
Taxpayers looking to protect themselves should:
- Avoid following tax advice unless it comes from IRS.gov, IRS-verified social media accounts, or licensed CPAs, enrolled agents, or tax attorneys
- Be skeptical of claims that promise huge refunds or “little-known loopholes”
- Know that filing a false return—whether intentional or not—can still result in penalties
- Remember that sharing false information online may expose them to legal risk, even if they don’t file a return themselves
“Just because someone posted it doesn’t mean it’s legal,” said Barbara Weltman, a tax author who’s warned that viral videos are fueling a false sense of confidence among inexperienced filers.
Concerned About IRS Penalties? Talk to Delia Law
If you relied on a social media “tax hack” and are now facing refund delays, audit notices, or more serious inquiries from the IRS, it’s important to act quickly and strategically. The IRS is aggressively targeting these trends—not just to block refunds, but to build cases. What may have seemed like harmless advice could now expose you to serious legal and financial consequences.
At Delia Law, we represent individuals and businesses facing IRS scrutiny triggered by inaccurate filings, questionable deductions, or unintentional red flags. Our legal team understands how these cases unfold—and how to resolve them with minimal disruption to your life or livelihood.
We help clients with:
- IRS audits and refund freezes
- Criminal tax investigations and defense
- Voluntary disclosures and amended returns
- Misclassification of income, deductions, or business activity
- Representation in IRS appeals and U.S. Tax Court
With enforcement expanding and misinformation spreading fast, don’t try to fix a tax issue with more guesswork—or by turning to the same online sources that caused it. When the stakes are high, you need experienced legal guidance, not internet advice.
Contact Delia Law to protect your finances, your future, and your rights under federal tax law.
