IRS Issues Alerts on False Self-Employment Tax Credit Claims and Phishing and Cloud Attacks, IR-2024-187; IR-2024-188

The IRS warned taxpayers about misleading claims regarding a fictitious “Self Employment Tax Credit.” Promoters and social media posts are inaccurately suggesting self-employed individuals and gig workers can claim substantial payments for the COVID-19 pandemic period. These claims are not valid, and taxpayers were advised to consult trusted tax professionals before filing such claims.

Promoters are falsely marketing a“Self Employment Tax Credit,” similar to incorrect promotions about the Employee Retention Credit. The actual credit being misrepresented is the Credits for Sick Leave and Family Leave, which is highly specific and only applicable under certain conditions in 2020 and 2021. Taxpayers filing claims based on misleading information risk submitting incorrect returns, as these credits are not available for 2023 tax returns. The IRS is scrutinizing such claims, and inaccurate filings can lead to complications.

IRS Commissioner Danny Werfel emphasized the danger of such misleading information, urging taxpayers to avoid outlandish claims from social media and marketers. Claims should be verified by consulting a reliable tax professional. The IRS highlighted that many self-employed individuals wrongly use Form 7202, leading to inappropriate claims. The IRS continues to see a pattern of incorrect claims fueled by social media, advising taxpayers to be vigilant and seek professional advice before filing.