Social media seems like something completely separate from your taxes; however, this can change quickly if you post the wrong thing.
The IRS is facing a huge tax collection gap year after year. This has spurred the agency to engage in more creative forms of finding monies they can collect. It’s really no surprise that social media accounts are now one of these targets.
Why social media is an appealing target
Anything you post on social media is public. Most people use it as a type of newsreel of their life. This is true for individuals and businesses.
For example, the IRS can investigate businesses that are behind on their payroll taxes. Part of this investigation may be to the owner’s social media pages. If they see images and posts of elaborate trips and extravagant purchases, it’s a clear indication that this wasn’t a “business trip” although was written off. When this type of information and evidence is found, it’s not unusual for the IRS to audit the person or individual in question.
Defending your position
It’s worth remembering that the information on social media doesn’t always tell the whole story. Because of this, if an audit is issued by the IRS, the taxpayer has the right to explain and defend their situation.
However, if you know you are behind on taxes – personally or in your business – it’s best to avoid posting information on social media and showing off all the money you are spending or other actions that may cause the IRS to audit you.
Protecting your rights
The IRS can be a scary entity to deal with. Because of this, it’s smart to get experienced legal guidance if you are facing an audit, for any reason, including one spurred on by information posted on your social media pages.