One question that we frequently get asked is if the IRS reviews taxpayers' social media accounts during audits. The answer is maybe.

The good news is that taxpayers are unlikely to be audited based on social media activity. For those who are being audited, however, the IRS may likely review their public accounts to see if their social media profiles match their tax records.

One commonly cited example of using social media as part of an audit is if a taxpayer claims a vacation as a business expense. If evidence posted to Instagram or TikTok indicates the trip was more play than work, the IRS may use that as evidence against business expense claims.

No Clear Policy

The truth is that the IRS doesn't currently have an explicit policy on how it uses taxpayers' public social media accounts. This is partially due to the IRS's lack of transparency. This lack of transparency was highlighted in the National Taxpayer Advocate 2023 Annual Report to Congress. The report named lack of transparency as one of the ten most serious problems facing the IRS. 

The report defines transparency as an obligation for the government, including the IRS, to share what information taxpayers need to make informed decisions. Currently, both taxpayers and tax professionals often struggle to access information in a clear and timely manner. This can include being able to communicate with IRS employees to ask questions and find resolutions. 

Audit Triggers

It's unlikely social media posts trigger an audit, but other factors may increase the risk of an audit. Individuals can also be randomly selected for an audit.

Mistakes or inconsistencies on tax returns make an audit more likely. Excessive deductions, such as a high level of charitable donations compared to income or being overly generous in what space a taxpayer claims as their home office, can raise red flags that can lead to audits.

If you need help, call Senior Partner, Tax Controversy Attorney, and former IRS attorney Brandon A. Keim at (602) 200-7399 or contact him online to discuss your options.