Why You Shouldn’t Get Tax Advice from Social Media

Scrolling through Instagram or TikTok and see a flashy ad promising “Do this one trick and you’ll never pay taxes again”? Tempting, right?

Here’s the problem: the IRS isn’t watching those videos for entertainment. They’re watching for taxpayers who take the bait. And guess what? They’re raking in penalties from people who did.

The Real Cost of Bad Social Media Tax Advice

Just recently, the IRS reported more than 32,000 penalties tied to tax schemes promoted online. That’s over $162 million in penalties alone — not counting back taxes or interest.

And if you’re thinking, “Well, my tax preparer did it, I didn’t know,” sorry. That doesn’t fly in court. The taxpayer is ultimately responsible for what goes on their return.

Why Tax Pros Won’t Touch These Schemes

If I jumped on the social media bandwagon and filed these sketchy credits for you, I’d be risking my license, huge fines, and maybe even jail. So, no thanks.

But not all preparers have the same standards. Some are inexperienced. Some are unscrupulous. And some are just in it for a quick buck. That’s why you need to know what’s real and what’s not.

The Top False Tax Credits Making the Rounds

Here are the biggest offenders:

• Fuel Tax Credit — meant for farms and certain off-highway businesses, not your commute.

• Sick and Family Leave Credits — pandemic-era credits for the self-employed, not W-2 employees.

• Turning your life into an LLC — no, you can’t deduct your rent and groceries just because you formed an LLC.

• Employee Retention Credit & other “evasion” schemes — heavy audit risk, steep penalties, and IRS attention.

How to Spot Bad Tax Advice Online

• If it sounds too good to be true, it probably is.

• If the video skips the lawyers, the costs, and the piles of paperwork — run.

• If someone promises zero taxes for everyone, it’s a scam.

How to Check If Your Tax Preparer Is Legit

• Look for a PTIN (Preparer Tax Identification Number) on your return. Every legit tax pro has one.

• Use that PTIN to verify whether they’ve faced disciplinary action.

• For CPAs, check the state licensing board to confirm their license is active and in good standing.

• If they push you to sign something you don’t understand or say “don’t worry about documentation,” walk away.

A Real Example of “Too Good to Be True”

Want to see how wild this can get? Watch the video linked below. It shows a mix of strategies that look exciting but are either extremely expensive, risky, or downright unrealistic.

Yes, some are technically legitimate — but some land you on the IRS Dirty Dozen list, none of them eliminate taxes, and the compliance is brutal. Honestly, I can barely get receipts out of most of you — so expecting this level of effort? Not happening. Bits and pieces might be useful in the right situation, but the whole package? Too complicated, too risky, and not worth it.

Cofield Video - click to watch

Final Thoughts

Social media tax hacks might make for great clickbait, but they’re not a replacement for real tax strategy. If you’re curious about whether a strategy could apply to you, talk to a licensed preparer or tax attorney who knows the law — not a stranger on TikTok.

Bottom line: If it’s on Instagram and it sounds like magic, leave it in the feed where it belongs.