Tax compliance is one aspect of running a dental practice that should never be overlooked, particularly as the IRS are clamping down on taxpayers who may have fallen victim to schemes on social media encouraging them to claim tax credits that are exaggerated or fraudulent.
With specialist guidance from a tax accountant for dentists, dental practice owners can protect themselves against such schemes before they escalate and cause serious problems financially and legally.
Tax scams on social media
Worryingly, so-called tax hacks and advice that’s misleading have become commonplace on social media, with influencers and supposed tax experts promoting different strategies for claiming deductions and credits that unfortunately, most dental professionals rarely qualify for.
Below are some of the schemes identified by the IRS, that have led to an influx of inaccurate returns:
Fuel tax credits – this credit is exclusively designed for businesses that use construction or farming equipment, and with new filing requirements introduced by the IRS in 2025, action has been taken to try and combat this growing scam that dental practices don’t qualify for.
Sick and family leave credits – although no longer valid, promoters are still trying to mislead taxpayers into making a claim for these credits that are available only to self-employed people during the tax years of 2020 and 2021.
Misuse of Schedule H – fraudulent schemes still exist that encourage taxpayers to invent household employees, so that they can claim employment tax credits for salaries that were never paid.
Self-employment tax credit (that doesn’t exist) – although it doesn’t even exist, fraudsters are trying to convince those who are self-employed to file claims for this tax credit that are false.
The consequences of false claims
Taking action to freeze refunds and carry out audits for false claims linked to schemes on social media, the IRS have reportedly dished out millions of dollars in penalties. With the consequences severe, it pays to work with a tax professional to ensure your dental practice doesn’t fall victim to a tax scam.
Why are dental professionals in particular at risk?
Because the majority of dental practices operate through professional corporations, S Corporations, or partnerships with complicated tax structures, even if an unintentional credit or deduction claim is made, it may raise a red flag with the IRS.
What may seem a harmless tip from a so-called tax expert on social media, can very quickly lead to expensive penalties, unnecessary risk, and unwanted attention from the IRS.
Protecting your dental practice from a tax scam
Here are a few ways to protect your dental practice:
- Work with a dental tax professional
Even if a viral influencer appears to know what they’re talking about, a simple mistake can cost your dental practice dearly. The best way to ensure that every credit or deduction is legitimate, is to consult with a dental tax expert before making any claims.
- Keep comprehensive records
Whatever credit or deduction you’re claiming, you must be able to substantiate it with the proper documentation.
- Stay informed
Regularly check the list compiled by the IRS that lists common scams and initiatives for compliance. Working with an expert in dentist tax planning should also help you stay informed.
Reacting to trends and unsolicited advice on social media is never a sensible way to conduct your taxes as a dental practice owner, and puts you at risk of penalties, audits, delays in legitimate refunds, and non-compliance. Proper tax planning must be proactive, involve plenty of planning, and focus on strategies that are IRS-compliant.