Why Should You Care About IRS Warnings and $53M in Grants?

It’s the holiday season, a time for joy, giving, and, unfortunately, scheming scammers. While you’re busy preparing for festivities, fraudsters are sharpening their tricks to steal sensitive information. Add to that the explosion of questionable tax advice on social media, and even the most experienced professionals need to stay sharp. But there’s good news: the IRS isn’t sitting idly by. From warning about scams to announcing $53 million in grants for free tax assistance programs, here’s what you need to know to help your clients and protect your own peace of mind.

Ho-Ho-Hold On to Your Data

‘Tis the season for phishing emails, fake delivery texts, and IRS impersonations. Scammers know people are distracted with shopping and festivities, making it the perfect time to prey on unsuspecting victims. Their goal? Steal your Social Security numbers, bank account information, and passwords, all with the promise of a fake refund or a package that doesn’t exist. As a professional, you can help your clients stay protected by reminding them of these key points:

• Never click on unexpected links or attachments in emails claiming to be from the IRS, delivery companies, or even retailers.
• Stick to secure websites with “https” in the URL when shopping online and avoid public Wi-Fi when accessing financial accounts.
• The IRS will never initiate contact through email or text to request personal information.

Scammers are evolving their tactics, but a healthy dose of skepticism goes a long way in keeping data safe.

A Recipe for Trouble

Picture this: a viral TikTok video claims you can get thousands of dollars in refunds by filing a “secret tax form” or claiming a credit that doesn’t apply to you. Sounds tempting, right? That’s precisely the hook scammers use to lure taxpayers into trouble. Social media is brimming with misleading tax “hacks” that promise big refunds but often lead to audits, fines, and even criminal charges. Some of the worst offenders include:

• Fake Credits: Promoters push nonexistent options like the “Self-Employment Tax Credit” and misuse forms like Form 7202, which was only valid for specific COVID-related claims in 2020-2021.
• W-2 Fraud: Scammers advise taxpayers to falsify income and withhold amounts on Form W-2 to generate inflated refunds.
• Fuel Tax Credit: This credit is strictly for off-highway business uses, yet it’s being misrepresented to individual taxpayers who don’t qualify.

The IRS and its Coalition Against Scam and Scheme Threats (CASST) are actively cracking down on these scams, but prevention starts with education. Encourage your clients to trust only verified sources like IRS.gov and licensed tax professionals for advice.

Tax Help Just Got a $53 Million Boost!

Not everything in this update is about dodging scams. The IRS recently announced $53 million in grants to expand the Tax Counseling for the Elderly (TCE) and Volunteer Income Tax Assistance (VITA) programs in 2025. These programs offer free tax preparation services for underserved communities, providing a much-needed lifeline during tax season. Here’s how these programs help:

• TCE focuses on taxpayers aged 60 and older, providing specialized tax counseling tailored to their unique needs.
• VITA serves low-income individuals and those with limited English proficiency, helping them file accurate returns without added costs.
• Both programs rely on IRS-trained and certified volunteers, ensuring trustworthy and accurate filings.

If your clients qualify, these programs can reduce their tax season stress while ensuring compliance.

Sleigh Tax Season Like a Pro!

The holidays and tax season may overlap, but that doesn’t mean they have to be chaotic. By keeping an eye out for scams, avoiding dubious social media advice, and leveraging programs like TCE and VITA, you can help your clients protect their wallets and file confidently. The IRS’s message is clear: stay vigilant, trust credible sources, and don’t fall for promises that sound too good to be true. Share these tips with your clients and remind them to visit IRS.gov for reliable guidance. A little preparation now can save a lot of headaches later. Stay informed and inspired—subscribe to MY CPE ONE for expert insights and actionable tips delivered right to your inbox!