The tax profession faces a growing challenge in today’s digital environment: misinformation spreads faster than ever before. Social media platforms are full of posts by influencers, self-proclaimed “experts,” and even well-meaning individuals who unintentionally misstate the law. In many cases, this false information can mislead taxpayers into costly mistakes.
The Internal Revenue Service has already signaled how serious the problem has become.
In 2025, the IRS announced that it’s already assessed $162 million in penalties over false tax credit claims specifically tied to social media. For tax professionals, you know the drill. Clients may bring questions based on what they read online and want your opinion on whether it’s true.
How you respond can be the difference between earning their trust or losing it.
Reliable, authoritative tools that you can access immediately and get trustworthy answers are no longer optional. Wolters Kluwer’s CCH® AnswerConnect has emerged as one of the most valuable resources for tax professionals who want to quickly verify claims, provide accurate answers, and help clients navigate a noisy information landscape.
The growing challenge of tax misinformation
False or incomplete tax guidance online comes in many forms. Some content is deliberately misleading, created by individuals looking to sell a product or promote a scheme. Other times, influencers share information without understanding the full context. As Georgia Smith, Senior Technology Product Manager for Wolters Kluwer Tax & Accounting North America, explains, “There are also a number of social media influencers who are also providing false information, not necessarily out of malicious intent, but out of ignorance.”
The result is the same either way. Taxpayers might file inaccurate returns, face the denial of refunds, or get hit with penalties. For practitioners, misinformation creates another layer of difficulty. When clients believe what they have read online, they may resist your professional advice. If they act on inaccurate information and face IRS scrutiny, trust in their advisor can erode quickly.
This environment underscores the importance of having immediate access to verified, expert analysis. Advisors who can confidently respond to client questions are better equipped to prevent missteps before they happen.
Example: The personal car loan interest deduction
- The deduction applies only for tax years 2025 through 2029.
- A maximum of $10,000 per year in interest can be deducted.
- Only new vehicles that underwent final assembly in the United States qualify.
- Phase-outs apply at $100,000 for single filers and $200,000 for joint filers.
- The deduction is available whether or not the taxpayer itemizes.
