Social media scams; emergency preparedness; Work Opportunity Tax Credit; educational assistance programs and more
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Issue Number: 2025-18Inside This Issue
The IRS warns all taxpayers to beware of costly social media tax scamsThe IRS warns businesses and individual taxpayers about 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. Many of the posts falsely claim all taxpayers are eligible for credits for which they don’t qualify, such as those meant for self-employed individuals or businesses. These scams have led thousands of taxpayers to file inaccurate or frivolous returns, often resulting in the denial of refunds and steep penalties. James Clifford, the IRS Director of Return Integrity and Compliance Services cautions, “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.” To learn more about how to spot these scams and what to do if you believe you may be a victim, read this news release. National Preparedness Month is a great time to update emergency preparedness plansThe IRS urges individuals and businesses to create or update their emergency preparedness plans. Disaster readiness starts with safeguarding critical documents, recording valuables and knowing how to access IRS support. Keeping updated records can speed up recovery and make it easier to apply for disaster assistance and emergency relief if a disaster strikes. When the government declares a federal disaster, the IRS often delays filing and payment deadlines. The IRS automatically applies the relief based on the address of record the IRS has for the taxpayer. Taxpayers outside affected areas, including relief workers or those with affected tax records, may request assistance by calling 866-562-5227. To learn more about what should be in an emergency preparedness plan see this news release. Work Opportunity Tax Credit is available until the end of 2025The Work Opportunity Tax Credit is a federal tax credit available to businesses that hire employees from groups who consistently face significant barriers to employment. The credit is available until Dec 31, 2025. Before claiming the credit, the employer must first get certification an individual is certified as a member of one or more of these groups. To complete this process, the employer submits IRS Form 8850, Pre-screening Notice and Certification Request for the Work Opportunity Credit, to their state workforce agency within 28 days after the eligible employee begins work. Do not mail the form to the IRS. For more information review this tax tip. Employers may help with college expenses through educational assistance programsSmall business employers can use educational assistance programs to provide tax-free help to employees with undergraduate or graduate-level student loan debt and other education expenses. Educational assistance programs can help pay for a variety of things, including:
For more details about eligible expenses and how to claim them see this tax tip. Applying for an EIN just got easierThe IRS recently updated the tool businesses use to apply for an Employer Identification Number online. The update gives the tool a new look and an improves user experience. The tool has a new look, but the overall functionality is the same. Federal, state, and local government entities can still get an EIN directly from the IRS in minutes, for free. Thank you for subscribing to this IRS email service. This message was distributed automatically from the mailing list e-News for Small Business. Please Do Not Reply To This Message. |
This email was sent to [email protected] by: Internal Revenue Service (IRS) · Internal Revenue Service · 1111 Constitution Ave. N.W. · Washington, D.C. 20535 | ![]() |