Are You Getting TikTok Tax Tips? Here's Why That Could Cost You

Many social media platforms such as TikTok, Instagram, and YouTube are filled with influencers promising “secret tax hacks” or “little-known credits” that can save you thousands. These TikTok tax tips videos are often engaging, creative, and can be very convincing. But here’s the problem: much of this content is produced by untrained or unlicensed individuals who are not CPA's, enrolled agents, or tax attorneys. Now, this is not to say that every item produced on social media platforms is by untrained individuals, as there are many reputable sources that provide valuable direction, the IRS for example is on many of the popular social media platforms and regularly post information related to consumer protection. But one should exercise caution when consuming information from non-professionals and know following their advice without speaking with someone familiar with the industry could cost you big.

When TikTok-Tax-Tips Go Wrong

The IRS recently reported that taxpayers are being caught in waves of audits tied to tax schemes promoted on social media. Recently, the agency announced it had assessed over $162 million in penalties related to false claims spread online (Internal Revenue Service, 2025). What’s happening is simple: taxpayers see a trending “hack” online, file their return using bad information, and then find themselves hit with penalties, interest, and in some cases, audits.

Common Red Flag Trends Seen on Social Media

Some of the most dangerous tax “tips” spreading online include:

• Claiming ineligible credits (such as fuel tax credits or pandemic-era credits that have expired).

• Overstating deductions (like turning personal expenses into “business write-offs” without justification).

• Misusing dependent claims (such as claiming children or relatives who do not qualify).

• Creating false losses through fabricated side hustles or businesses.

While these might look like clever ways to reduce your tax bill, they are often blatant misapplications of IRS rules — and the penalties can be severe.

Not Just Social Media Trends: Wealthy Taxpayers Also at Risk

It’s not just everyday average taxpayers being misled. Even wealthy individuals are getting tripped up with promises to reduce their tax bills, some even from their tax advisors. The Wall Street Journal recently reported on a strategy involving “sovereign tribal tax credits” marketed to high-net-worth taxpayers. Federal prosecutors are now scrutinizing these deals, and lawsuits allege that clients were left with massive tax bills and penalties when the credits proved invalid (WSJ, by Tokar & Rubin, 2025). This shows that whether it’s a flashy viral video or a sophisticated-sounding loophole, bad tax advice comes at every level—and the IRS is cracking down.

The Cost of Bad Advice

Penalties for filing inaccurate returns can range from a percentage of the underpayment (for negligence or disregard of IRS rules) up to a percentage for fraud-related issues. Add in interest charges, and taxpayers may find themselves owing far more than they ever hoped to “save.” Worse, repeat offenders or those who file intentionally false claims could face criminal prosecution.

Why Professional Guidance Matters

As intriguing as some of these viral tax trends may seem, the reality is that your tax situation is unique. What works in a short media clip or in a sales pitch may not apply to your financial circumstances and could put your compliance at risk.

The safest and smartest approach is to consult with a CPA or tax professional before making any decisions based on information you see online. A licensed professional is bound by ethical and professional standards to give advice that protects you, not hurts you. For example, here at DiSalvo Tax and Accounting we offer a free :15-minute telephone consultation to review your situation when you've been presented with these alternative sources of information. Allow our years of level accounting experience inform you on the most current and relevant sources.

subtle Warning

Now, the last thing you should walk away from this post is with more fear or trepidation as it pertains to your interactions with the IRS. But yet a word of caution how tax trends on social media outlets might look enticing, and exotic loopholes might sound appealing, but both can leave you with penalties, audits, and sleepless nights. Don’t gamble with your financial future based on viral content or unproven strategies.

When you come across a tax idea online or in the news, pause before acting and talk with a professional first. At DiSalvo Tax & Accounting, we’ve seen firsthand how costly bad tax information can be. Let us help you separate fact from fiction and keep your filings compliant with the IRS. For Brevard County or Vero Beach, or anywhere in Florida you can look to our team of local Florida professionals to help you.

References

Internal Revenue Service. (2025, August 21). IRS assesses $162 million in penalties over false tax credit claims tied to social media. U.S. Department of the Treasury. https://www.irs.gov/newsroom/irs-assesses-162-million-in-penalties-over-false-tax-credit-claims-tied-to-social-media

Internal Revenue Service. (2025, July). Misleading Social Media Advice Leads to False Claims for Fuel Tax Credit, Sick and Family Leave Credit, Household Employment taxes: FAQ's... U.S. Department of the Treasury. https://www.irs.gov/newsroom/misleading-social-media-advice-leads-to-false-claims-for-fuel-tax-credit-sick-and-family-leave-credit-household-employment-taxes-faqs-help-address-common-questions-next-steps-for-those-receiving-irs

Tokar, D. & Rubin, R., (2025, August 23). A tax strategy peddled to the rich comes under federal scrutiny. The Wall Street Journal. https://www.wsj.com/us-news/law/a-tax-strategy-peddled-to-the-rich-comes-under-federal-scrutiny-ee013e82

Reference: Blog AI Assited: OpenAI. (2024). ChatGPT (GPT-4o) [Large language model]. https://chat.openai.com

Disclaimer: The information in this article is for general informational purposes only and should not be considered tax, accounting, or legal advice. Every situation is unique, and results may vary. For guidance specific to your circumstances, please consult a qualified professional.