The IRS Dirty Dozen: Why Bad Social Media Tax Advice Can Cost You Big

Introduction:

Social media is full of quick tips and flashy shortcuts, but when it comes to taxes, following bad advice online can lead to serious consequences. In this post, Jon Markee, your Builder CPA, continues his breakdown of the IRS “Dirty Dozen,” focusing on one of the fastest-growing risks this year, inaccurate tax advice on social media.

The Growing Problem with Social Media Tax Advice

The IRS has identified bad tax advice on social media as one of the most dangerous threats facing taxpayers today. Platforms like TikTok, YouTube, and Instagram are flooded with content that oversimplifies complex tax rules or outright misrepresents them. While some creators mean well, others spread advice that is flat-out wrong, and following it can put you at risk for audits, penalties, or worse.

Misusing Tax Forms and Promoting Fraud

One of the most concerning trends involves people encouraging taxpayers to misuse common tax documents, such as Form W-2. The IRS and tax professionals warn that knowingly filing fraudulent returns, even if the idea came from a social media video, can result in significant civil and criminal penalties. “I’ve seen other CPAs roasting these videos and disproving them,” Jon explains. The misinformation is real, and the consequences are serious.

Why One-Size-Fits-All Advice Doesn’t Work

Even trustworthy educational content has limits. Tax law is full of exceptions, and what applies to one situation may not apply to another. Jon emphasizes that no YouTube video, including his own, should be considered the final word on your tax situation. Each business and taxpayer is unique, and personalized advice from a knowledgeable professional is essential.

AI Tools and the Risk of Outdated Information

AI tools like ChatGPT can be powerful research aids, but they should always be approached with healthy skepticism. Tax laws change frequently, and even advanced tools may rely on outdated information. Jon recommends using AI as a starting point, not a decision-maker, and validating what you find with current sources or a tax professional.

The “Gut Check” Rule

A simple way to spot bad advice? Trust your instincts. If your business had a highly profitable year and your calculations show a zero-dollar tax liability, something is probably wrong. Most small business owners are not operating at the level of massive corporations with complex tax structures. When results don’t pass a basic gut check, it’s time to slow down and ask questions.

The Surprising Link to Identity Theft

One of the more alarming aspects of this Dirty Dozen item is its connection to identity theft. In some cases, scammers pose as qualified tax preparers on social media, encourage viewers to contact them, and then misuse personal information. While shocking, it’s a reminder to verify credentials and only work with trusted professionals.

Final Thoughts

Bad social media tax advice can lead to audits, penalties, fraud charges, and even identity theft. The IRS’s message is clear: rely on reputable sources, question what you see online, and consult a qualified tax professional before taking action. As Jon Markee, your Builder CPA, reminds us, approach everything with a skeptical eye, and make sure your tax decisions actually make sense for your situation.

For more insights like this, watch Jon Markee’s video series covering the IRS Dirty Dozen. As always, thanks for reading and stay vigilant.