In a recent alert, the IRS has raised concerns about false claims and misleading advice spreading across social media regarding a non-existent Self Employment Tax Credit. This misinformation is leading taxpayers to file incorrect claims, potentially resulting in significant consequences.
The False Promise
Promoters on social media platforms are aggressively marketing what they dub the “Self Employment Tax Credit.” They claim that this credit is a means for self-employed individuals and gig workers to receive substantial payments related to the COVID-19 pandemic period. These claims are not only false but also deceptive, luring people with promises of payments up to $32,000.
The Reality
The IRS has confirmed that there is no such thing as a Self Employment Tax Credit. These misleading promotions are reminiscent of the inaccurate information previously circulated about the Employee Retention Credit. Just as with those false claims, the information being shared about the supposed Self Employment Tax Credit is incorrect and potentially harmful.
What You Need to Know
- No Self-Employment Tax Credit Exists: The IRS has not created or sanctioned any tax credit specifically for self-employed individuals or gig workers related to the pandemic.
- Verify Your Information: Always cross-check any tax-related advice you come across on social media with reliable sources or directly with the IRS.
- Avoid Filing False Claims: Submitting a tax return with false information can lead to audits, penalties, and additional scrutiny from the IRS.
Protect Yourself
To protect yourself from falling victim to these scams, stay informed and cautious. If you're ever in doubt about the legitimacy of a tax credit or deduction, seek advice from a trusted tax professional or consult the IRS website directly.
For more information on legitimate tax credits and deductions available to self-employed individuals, feel free to reach out to our team at By the Books Consulting. We're here to help you navigate the complexities of tax laws and ensure you make informed decisions for your business.
Stay safe, stay informed, and avoid the pitfalls of misinformation!
If you have any questions or need further assistance, don’t hesitate to contact us. At By the Books Consulting, we're dedicated to helping truck fleet owners and operators achieve clarity and maximize their profits through accurate and reliable tax strategies.