The IRS Has Eyes
Having any presence on social media—even sans influencer following or income—can and may be used against you by the IRS. Have you ever Googled yourself? You will likely be shocked at how much information there is. The IRS can (and has in previous cases) collect any public, easily accessible information and utilize it to support its position against you. A good example is a tax evasion case where a Washington, D.C.-residing billionaire claimed to live in other states such as Virginia or Florida (states with much less to no state income tax compared to D.C.) and paid zero D.C. income tax during the years in issue. The billionaire’s social media posts included photos his then-“future home” with captions detailing its renovations statuses—all of which the IRS utilized to demonstrate that the billionaire “spent a majority or plurality of each year physically present in [Washington, D.C.].”
Two takeaways from this case: First, always fulfill and file your tax obligations accurately, completely, and correctly. Second, if you intentionally evade your tax obligations, the IRS can and may use your social media posts in its case against you.
This post is Part 3 of the Posts, Profits, and Penalties series, and each part can be found by clicking the following corresponding link: Intro, Part 1, and Part 2.
Freeman Law Attorneys
If you have any questions regarding potential social media-related tax issues, Freeman Law can help. We offer value-driven legal services and provide practical solutions to complex tax issues. Click here to schedule a consultation or call our office at (214) 984-3000.
