Zettel Accounting and Tax Service LLC

09/08/2025

IRS assesses $162 million in penalties over false tax credit claims tied to social media

IR-2025-90, Sept. 8, 2025

WASHINGTON — The Internal Revenue Service is alerting taxpayers about a growing number of fraudulent tax schemes circulating on social media that promote the misuse of credits such as the Fuel Tax Credit and the Sick and Family Leave Credit. These scams have led thousands of taxpayers to file inaccurate or frivolous returns, often resulting in the denial of refunds and steep penalties.

Since 2022, the IRS has seen a surge in questionable refund claims fueled by misleading social media posts and bad actors posing as tax experts. Many of the posts falsely claim that all taxpayers are eligible for credits they do not actually qualify for, such as those meant for self-employed individuals or businesses. The IRS routinely publishes and updates a list of frivolous positions on IRS.gov that could lead to the imposition of penalties.

“These schemes are not only misleading but can cost taxpayers dearly,” said James Clifford, IRS Director Return Integrity and Compliance Services. “People who follow this advice could end up with rejected claims and a penalty of up to $5,000 in addition to any other penalties that might apply. So far, the IRS has imposed over 32,000 penalties costing taxpayers more than $162 million. It’s in the taxpayer’s best interest to stay informed.”

How to spot these scams

These scams often have common traits:

Social media posts that claim everyone qualifies for certain tax credits.
Promises of “easy” or “fast” refund with minimal documentation.
Instructions to file amended returns, even if you did not originally qualify for the credits.
Encouragement to ignore IRS letters or respond with false information.
What happens when a taxpayer falls for a scam

Taxpayers who submit false claims may face serious consequences:

Delayed refunds.
Denied refund claims.
A $5,000 civil penalty under Internal Revenue Code Section 6702 for filing a frivolous return.
Subject to further IRS examination and enforcement action.
What taxpayers can do if they are targeted

Taxpayers who believe they have been misled or filed an incorrect return should:

Amend the tax return as soon as possible using Form 1040-X, Amended U.S. Individual Income Tax Return.
Respond promptly to any IRS letters or notices.
Seek help from a reputable tax professional or the IRS’s official resources at IRS.gov.
If you suspect a tax scam, report it to the IRS by emailing [email protected] or file a complaint with the Treasury Inspector General for Tax Administration (TIGTA).

Stay informed

The IRS urges all taxpayers to be cautious when relying on social media posts. Always verify claims with credible sources or consult a qualified tax professional.

Send a message to learn more

01/22/2025

The IRS announced that if you’re claiming Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) in your 2024 taxes, you’re not expected to receive your refund until March 3, 2025.

Send a message to learn more

08/29/2024

IRS Backlog of Deceased Taxpayer Refunds

The IRS has acknowledged that it had a significant backlog of unprocessed tax forms and refunds claimed on behalf of deceased taxpayers but has taken steps to resolve the issue. National Taxpayer Advocate Erin Collins said in her blog that the backlog was the result of paper Forms 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer, received for 2022 and 2023 not being properly processed by the IRS. The IRS has prioritized its processing of Forms 1310 and only had about 1,100 unprocessed returns at the beginning of August.

While the IRS has added Form 1310 to its modernized e-file platform, not all Forms 1310 are supported, and some require paper filing. Unfortunately, the Forms 1310 filed for 2022 and 2023 were not properly processed. If a Form 1310 is unprocessed, the IRS can't process the associated final return and issue a refund. Because the IRS must manually issue a refund once the Form 1310 has been processed, there were significant delays in issuing the refunds for 2022 and 2023. The IRS has identified the cause of the issue and worked to decrease the backlog of unprocessed Forms 1310 and manually issue the associated refunds.

Send a message to learn more

06/25/2024

ID Theft Victims Face Long Refund Delays

National Taxpayer Advocate Erin Collins (TAS) calls for increased IRS focus on identity theft victims after finding they are waiting nearly two years to receive their tax refunds. According to a recent post on her blog, taxpayers should brace themselves for long delays for their case to be resolved after submitting a Form 14039, Identity Theft Affidavit, to the IRS. Collins called on the agency to prioritize assistance to taxpayers who have been the victim of identity theft, paying out their refunds and preventing future harm.

While the IRS has taken steps to reduce processing times and appears to have increased the number of closed cases, processing times increased from 556 days at the end of the 2023 fiscal year to 675 days as of April 2024. Collins said the IRS should prioritize improved response for identity theft claims using the same all-hands-on-deck approach it used to address its processing of paper returns during the pandemic.

Send a message to learn more

02/07/2024

If my phone rings and states voice mail is not set up think of it as a busy signal and call back. I do not have time to answer calls and retrieve voice mails. Thank you and I look forward to seeing you. Vera Zettel of Zettel Accounting and Tax Service LLC

03/01/2023

01/04/2022

Bring this to your appointment!

11/03/2021

Year-end giving reminder: Special tax deduction helps most people give up to $600 to charity, even if they don’t itemize

WASHINGTON – The Internal Revenue Service today reminded taxpayers that a special tax provision will allow more Americans to easily deduct up to $600 in donations to qualifying charities on their 2021 federal income tax return.

Ordinarily, people who choose to take the standard deduction cannot claim a deduction for their charitable contributions. But a temporary law change now permits them to claim a limited deduction on their 2021 federal income tax returns for cash contributions made to qualifying charitable organizations. Nearly nine in 10 taxpayers now take the standard deduction and could potentially qualify.

Under this provision, individual tax filers, including married individuals filing separate returns, can claim a deduction of up to $300 for cash contributions made to qualifying charities during 2021. The maximum deduction is increased to $600 for married individuals filing joint returns.

Included in the Coronavirus Aid, Relief, and Economic Security (CARES) Act, enacted in March 2020, a more limited version of this temporary tax benefit originally only applied to tax-year 2020. The Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted last December, generally extended it through the end of 2021.

Cash contributions include those made by check, credit card or debit card as well as amounts incurred by an individual for unreimbursed out-of-pocket expenses in connection with their volunteer services to a qualifying charitable organization. Cash contributions don’t include the value of volunteer services, securities, household items or other property.

The IRS reminds taxpayers to make sure they’re donating to a recognized charity. To receive a deduction, taxpayers must donate to a qualified charity. To check the status of a charity, they can use the IRS Tax Exempt Organization Search tool.

Cash contributions to most charitable organizations qualify. But contributions made either to supporting organizations or to establish or maintain a donor advised fund do not. Contributions carried forward from prior years do not qualify, nor do contributions to most private foundations and most cash contributions to charitable remainder trusts.

In general, a donor-advised fund is a fund or account maintained by a charity in which a donor can, because of being a donor, advise the fund on how to distribute or invest amounts contributed by the donor and held in the fund. A supporting organization is a charity that carries out its exempt purposes by supporting other exempt organizations, usually other public charities.

Keep good records
Special recordkeeping rules apply to any taxpayer claiming a charitable contribution deduction. Usually, this includes obtaining an acknowledgment letter from the charity before filing a return and retaining a cancelled check or credit card receipt for contributions of cash.

10/11/2021

I could use some rest I don't think I will send the cards. LOL

07/01/2021

The Internal Revenue Service is grappling with a massive backlog of 35 million unprocessed tax returns, according to a new report from a government watchdog. That will cause millions of individual and business taxpayers to wait to receive potentially critical federal refunds.