The IRS Is Warning Taxpayers About A Few Issues

IRS Warnings & Tax Strategies for 2026

Key Concepts:

• PTIN: Preparer Tax Identification Number – a unique number issued by the IRS to authorized tax preparers.
• OIC: Offer in Compromise – an IRS program allowing certain taxpayers to settle their tax debt for less than the full amount owed.
• Fuel Tax Credit/Sick and Family Leave Credit: Specific tax credits often misused or falsely claimed by taxpayers who don’t qualify.
• Fishing Scams: Fraudulent attempts to obtain sensitive information (like passwords or bank details) through deceptive emails, texts, or phone calls.
• Ghost Tax Preparers: Unscrupulous preparers who avoid accountability by refusing to sign returns or provide their PTIN.
• Solo 401(k) / Regular 401(k): Retirement savings plans available to self-employed individuals and businesses, offering potential tax advantages.
• W-2/1099 Forms: Documents reporting wages and income, often targeted in fraudulent schemes.

I. IRS Scam Alerts & Fraudulent Schemes

The IRS is issuing warnings to taxpayers regarding a surge in scams, particularly those promoted on social media platforms like TikTok. These schemes promise substantial and rapid tax refunds through the improper claiming of tax credits. Specifically, the IRS cautions against misleading advice regarding the fuel tax credit and the sick and family leave credit, which are generally applicable only to specific businesses or self-employed individuals under certain conditions. The core issue is that many taxpayers are attempting to claim credits for which they do not qualify, potentially leading to audits and penalties.

The speaker highlights his own journey into real estate in 1999, driven by a desire to legally minimize his tax burden, emphasizing the importance of understanding tax loopholes beyond what standard CPAs might know, particularly those without experience in cash-flowing real estate and business ownership. He notes the disparity in knowledge between CPAs who run their own businesses and those who solely provide tax preparation services.

II. Risks Associated with Tax Preparation Services

The speaker warns against relying solely on services like H&R Block or TurboTax, suggesting they are designed to provide basic services rather than maximizing potential refunds. He emphasizes the importance of verifying the legitimacy of tax advice, especially from social media “experts,” and ensuring they can substantiate their claims in the event of an IRS audit. A crucial point is the signing of the tax return itself – taxpayers are legally agreeing with the information contained within, making them responsible for its accuracy.

A significant concern raised is the rise of “ghost tax preparers” – individuals who refuse to sign tax returns or provide their PTIN (Preparer Tax Identification Number). The IRS considers this a red flag, as legitimate preparers are legally required to identify themselves. Furthermore, dishonest preparers may attempt to deposit refunds into their own accounts or charge excessive, refund-based fees. The speaker expresses shock that such practices exist, recounting stories of individuals losing substantial sums of money to these scams.

III. Common Scams & IRS Resources

Beyond ghost preparers, the IRS is also warning about:

• OIC (Offer in Compromise) Mills: Companies aggressively advertising the ability to settle tax debts for a fraction of the amount owed. The IRS emphasizes that taxpayers can often negotiate directly with the IRS for free using the OIC pre-qualifier tool. The speaker personally recommends contacting the IRS directly, noting surprisingly positive experiences even at the local office level, despite the complexity of the system.
• False W-2/1099 Schemes: Social media is circulating schemes encouraging individuals to create and submit fraudulent W-2 or 1099 forms with fabricated income and withholding information to inflate their refunds.

The speaker stresses the prevalence of “fishing scams” – fraudulent emails, texts, and phone calls designed to steal personal and financial information. He explicitly states that he will never ask for money online and warns viewers to be wary of imposters. He notes receiving daily emails from individuals who have lost their life savings to these scams.

IV. Proactive Tax Planning for Business Owners & Side Hustlers (2026 Focus)

The speaker promotes a free webinar scheduled for 5:00 p.m. Pacific time, featuring his CPA and tax planner. The webinar will focus on strategies that 90% of business owners and side hustlers are not utilizing to save money and increase profits in 2026.

A key area of focus will be maximizing retirement savings through company-structured plans. The speaker highlights the potential to establish a retirement fund within a company that functions as a tax write-off due to being considered a business expense. He emphasizes the importance of understanding the nuances of different retirement plans, such as solo 401(k)s and traditional 401(k)s, and tailoring strategies to specific business structures. The goal is to achieve a 20% savings rate, which can then be reinvested to further grow the business.

V. The Importance of Continuous Learning & Professional Guidance

The speaker mentions the rapidly changing landscape of tax law, particularly in areas like cryptocurrency, requiring constant updates to tax courses and strategies. He notes his CPA is already planning updates to their crypto tax course just two weeks after filming the initial content. This underscores the need for ongoing education and professional guidance to navigate the complexities of the tax system.

Notable Quote:

“I can guarantee you there's some CPAs in the uh crowd right now. They're shaking their heads. They're nodding it. Yes, we totally get it.” – The speaker acknowledging the varying levels of expertise among CPAs.

Conclusion:

The video serves as a critical warning to taxpayers about the increasing prevalence of tax scams and the importance of due diligence when seeking tax advice. It emphasizes the need to verify information, work with reputable tax professionals who are willing to take responsibility for their work (by signing returns and providing their PTIN), and proactively plan for tax savings, particularly for business owners and side hustlers. The webinar promotion highlights the potential for significant financial gains through strategic tax planning in 2026.