The IRS recently released its annual Dirty Dozen list of tax scams.  The Tax scams on the list include phishing scams,  ghost preparers, and bogus tax deductions.  One of the scams on the list is misleading social media advice.

Social media is a source of information and disinformation.  It is not hard to come by some charlatan peddling bogus medical cures or some fake news story.  The field of tax is not immune from disinformation.  There are tax charlatans on social media spreading all sorts of disinformation about taxes and tax advice.  With this in mind, we would like to provide some helpful hints so you can discern fact from fiction.

• Who is Giving is Making the Statement?  Perhaps the most important thing you should look for when determining whether information about tax (or any other subject for that matter) is credible, is the qualifications of the person making the statement.   Is this person a licensed attorney, CPA, or Enrolled Agent?  What is their educational background?  At RJS Law, our staff is comprised of licensed attorneys and other professionals with advanced degrees in taxation.  Tax misinformation you read on social media, not prepared by someone with any sort of credentials, is most likely to come from a marketing person who has never worked on a tax case.

I should note we do not provide legal or tax advice on our blogs. Nobody can tell you how to prepare your tax return or handle some other tax matter through a blog.   Proper tax advice requires a full review of your particular facts and circumstances.  At best a blog post or anything you read on social media is a potentially helpful start to a dialogue you should have with your accountant, attorney, or other trusted tax professional. 

• Is the Statement too good to be true?  We all know taxes are expensive and unavoidable.  There are legitimate tax planning strategies that can reduce tax bills, but one should be wary of any statement claiming you can get away without paying taxes should be viewed with suspicion.  This would include statements by companies suggesting taxes can be “negotiated” or that the IRS is freely handing taxpayers a “fresh start.” 

• Conspiracy Theories and Tax Protestors.  Any type of conspiracy theory or tax protestor type arguments should be avoided.  The IRS lists many such conspiracy theories and tax protestor arguments on its website.  Such arguments include the income tax system being unconstitutional, taxes being voluntary, and sovereign citizen arguments. 

At RJS LAW we pride ourselves on serving our community with integrity, honesty, and compassion.  We are here to give you honest answers to your tax questions, even if those answers are not the answers you want to hear.  We help people with various tax issues including federal tax audits, state tax audits, tax planning, and tax collections.  Please feel free to contact us at 619-595-1655 or via the web at RJS LAW for a consultation with one of our experienced attorneys. 

Written by Joseph Cole, Esq., LL.M.