Life Kit (NPR)

Episode: How to Avoid This Year’s Common Tax Scams
Host: Marielle Segarra
Guest: Mark Gallegos, CPA, Partner at Porty Brown (Chicago)
Date: March 12, 2026

Episode Overview

This episode dives into the world of tax season scams and misinformation. Host Marielle Segarra interviews accountant Mark Gallegos to discuss the most common tax misinformation spreading online, how to verify questionable deductions, and spot outright scams. They also highlight significant 2025 tax law changes and offer practical, actionable steps for protecting yourself during tax season.

Key Discussion Points & Insights

1. The Problem with Tax Advice Online

(00:00–01:48)

• Many people turn to social media for tax advice because taxes feel technical and intimidating.
• Real tax advice is based on law and precise documentation, not viral, oversimplified soundbites.
• Mark Gallegos:

  "So like a 30 second video can make a complex tax provision sound universal when really it applies to a very narrow set of facts and circumstances..." (00:55)

Takeaway: If it sounds universal or too-good-to-be-true, it almost certainly isn’t right for everyone.

2. Examples of Bad Tax Advice

(02:20–05:56)

• Inflating Deductions/Credits:
  Fake income reports to claim credits, improper dependent claims, 100% personal expenses written off as business, misclassifying personal groceries or clothes.

• IRS “Roulette” and Audit Risks:
  Some believe the IRS won’t catch small infractions because it’s understaffed, but getting caught has real penalties and even possible criminal risk.

  Quote:

  "[People think] what's the percentage? And they try to play the odds like they're gambling with it." (03:52)
  "You're not just going to get slapped on the hand. There's penalties. There could be civil risk, there could be criminal risk." (04:04)

• Social Media and Entertainment:
  Tax advice is packaged for clicks, not compliance, e.g., “Everyone qualifies,” “Write off your dog as a security system,” or “Forming an LLC guarantees deductions.”

  Quote:

  "If someone posts something that is just blatantly wrong...the tax community will reach out [...] they're very active in seeing this stuff..." (05:16)

3. How to Vet Tax Advice Online

(05:56–10:09)

• Critical Steps:

  1. Treat viral tax tips as a starting point, not final advice.
  2. Slow down; “urgency is the scammer’s fuel.”
  3. If advice applies to “everyone,” it likely applies to almost no one—tax law is fact-specific.
  4. Look for credentials: CPA, JD, Enrolled Agent.
  5. Professionals discuss risk and documentation requirements; fake experts do not.

  Quote:

  “Urgency is the scammer’s fuel. That’s where they get their oxygen from.” (06:28)

• Primary Source Verification:
  Always check IRS.gov for the official tax rule or credit to see if you really qualify. Use IRS publications and code sections, not tertiary summaries or social media snaps.

  Quote:

  "Substantial authority means not, oh, I have a TikTok video... It is I can do this because Internal Revenue Code, whatever, says I can do it." (09:38)

• Tools:
  If the IRS site’s search isn’t useful, use reputable search engines or AI tools for IRS publication numbers, then return to IRS.gov for the authoritative source.

Takeaway: Always track tax ideas back to a primary, authoritative source and understand the associated risks.

4. Common & Recent Tax Scams to Watch For

(11:34–14:38)

• Motives for Tax Misinformation:
  Some seek influencer status; others aim to steal personal or financial information.

• Tax Resolution & Impersonation Scams:
  Scammers pose as IRS “agents” promising to reduce your tax liability—usually with urgent, threatening language (“This is our final attempt…” or “Pay now or go to jail!”).
  Texts/Emails: Offers to “verify your refund,” requiring you to click a link (phishing). Social Media: Clickbait promising credits or deductions, which may harvest your data or install malware.

  Quotes:

  "Delete that." — On texts/emails asking you to verify your refund or identity (13:06)
  "The IRS is not going to text you to threaten you with jail time." (13:34)
  "They don't accept gift cards as payment." (13:40)

• Tax Preparer Scams:

  • Ghost preparers: Prepares your tax return but refuses to sign it, which is illegal for paid preparation.
  • Real preparers must have a PTIN (Preparer Tax Identification Number) and sign all returns with their contact info.
  • Do due diligence before giving anyone personal data.

  Quote:

  "Anyone you're paying to prepare your tax return also needs to sign it as paid preparer at the bottom of the tax return." (14:43)

Takeaway:
Never respond to urgent texts, emails, or calls claiming to be from the IRS. Legitimate tax professionals will have official credentials and transparency.

5. 2025 Tax Law Changes: What’s New

(15:39–17:11)

• State and Local Tax (SALT) Deduction:
  The cap has been raised from $10,000 to $40,000, with some income limits (specifics not covered; check IRS.gov for details).

• New Deductions:

  • Overtime pay: Federal tax deduction up to $12,500
  • Paid tips: Deduction up to $25,000
  • Seniors (65+): $6,000 deduction

• These new breaks may apply whether or not you itemize, but always check for eligibility.

Quote:

"Now the cap has been raised to $40,000. It does have some limits." (17:11)
"If you get overtime pay, you might be eligible for a federal tax deduction of up to $12,500." (17:18)

Notable Quotes & Memorable Moments

• "Urgency is the scammer's fuel. That's where they get their oxygen from." – Mark Gallegos (06:28)
• "[IRS scam calls]...This is our final attempt to reach you. ... If you don't pay this, you will end up in jail. So that's just so false." – Mark Gallegos (12:23)
• "If advice sounds interesting, consider that a starting point. It's on you to figure out if that deduction...is real and if you actually qualify." – Marielle Segarra (05:56, 17:45)
• "Your tax preparer should have what's called a PTIN, a preparer Tax identification number that comes from the IRS." – Marielle Segarra (15:39)

Timestamps for Important Segments

• 00:00 — Episode introduction; why social media tax advice can be risky
• 02:20 — Specific examples of bad tax advice (fake credits, inflated deductions)
• 05:56 — How to evaluate and verify tax advice found online
• 07:35 — Tools for finding IRS primary source material
• 11:34 — Why tax misinformation spreads & common scams to watch out for this year
• 14:38 — How to verify your tax preparer’s credentials
• 15:39 — 2025 tax law changes: expanded deductions and who qualifies
• 17:45 — Recap of major takeaways

Recap — Major Takeaways

1. Treat viral tax advice as a prompt for further research, not an answer.
2. Verify every claim using IRS primary sources (publications, code sections).
3. Beware of scams: The IRS won’t text threats or request payment via gift cards. Never respond to urgent outreach you didn’t initiate.
4. When hiring tax help, ensure your preparer signs the return, provides their PTIN, and is credentialed.

For more details, official tax law references, and a directory of verified tax preparers, visit irs.gov.