Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
IRS May Lean on Social Media to Gain Information About Taxpayers
Author: Scarinci Hollenbeck, LLC
Date: May 1, 2013
Key Contacts
Back
The Internal Revenue Service is receiving a great deal of criticism after allegations that it relies on social media and emails as an investigative tool into potential tax law violations being committed by Americans.
For example, if a person submits a suspicious tax return in which they claim little income, but then post pictures of a luxury purchase or string of vacations they took, this could prompt greater scrutiny by the IRS, Digital Trends reports.
The charge has led to a great deal of scrutiny about which means the federal agencies can and cannot use to prosecute potential lawbreakers. When it comes to social media sites, such as Facebook and Twitter, the law may be on the side of the IRS if it relies on public information to support its claims, according to the news source. Information that is made publicly might be fair game for federal agents, and many professionals across different industries – ranging from divorce attorneys to insurance agents – have used information publicly posted on Facebook and Twitter in a legal atmosphere.
However, the IRS has denied using social media in any form to go after Americans.
“Suggestions that the IRS is using social media to target taxpayers for audit are wrong,” an IRS spokesperson told Fox Business. “Audits are based on the information contained on a person’s tax return, not a posting on a social media site.”
However, the IRS recently got into hot water for its controversial policy of reading taxpayers’ personal emails without a search warrant. In a U.S. Senate hearing, Acting Commissioner Steven Miller said that the no-warrant-required policy would be eliminated within 30 days for e-mail communications, according to CNET. However, he did not elaborate on whether other types of private communications would also fall under this suspended policy.
- Practices: Tax and Trusts & Estates
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Tariff Response Options for Small Businesses Facing Financial Distress
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Author: Brian D. Spector
Common Causes of Partnership Disputes and How to Resolve Them
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Author: Christopher D. Warren
Businesses Are Facing Financial Headwinds—A Practical Guide
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
Author: Scott H. Novak
President Trump's Termination of Member Gwynne Wilcox
On January 28, 2025, the Trump Administration terminated Gwynne Wilcox from her position as a Member of the National Labor Relations Board (NLRB or the Board). Gwynne Wilcox, a union side lawyer for Levy Ratner, was confirmed to the Board for an original term in 2021 and confirmed again for a successive five-year term expiring […]
Author: Matthew F. Mimnaugh
Breach of Contract Explained: Types and Consequences
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
Author: Brittany P. Tarabour
How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Author: Christopher D. Warren
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.