A new scam is targeting salon and barbershop owners, promising an IRS refund as part of the 45B FICA Tax Tip Credit program.
The Professional Beauty Association warns that beauty and grooming business owners have recently been receiving texts, emails, and social media messages falsely asserting they can receive cash refunds from the IRS by amending tax returns for previous years to retroactively claim the 45B FICA Tax Tip Credit.
The 45B credit is not a refund program, but a credit that lets businesses reduce their tax liability on employee tips. The credit was expanded to include beauty and wellness businesses in July 2025. Business owners are not eligible to apply it to prior years, and any promises of direct cash back from the IRS are fake.
How to Identify the Scam
- Promises of "free money" or "refund checks." The FICA Tip Credit reduces business tax liability, but does not result in a direct cash repayment from the IRS.
- Claims for past years. The credit for the beauty industry became effective in 2025, so any claim for prior years such as 2022 or 2023 is not eligible.
- Guaranteed approval. The credit is not guaranteed. Eligibility depends on specific qualifications and proper application.
- Aggressive social media advertising. Scammers often use social media to promise easy or fast refunds with minimal effort.
- Requests to file amended returns for past years. Scammers may encourage businesses to file amended returns for past years to claim credits they did not originally qualify for.
Common phrases associated with this scam include:
- Free government money
- Refund checks from the IRS
- Covered for 4 years
- Guaranteed approval
The PBA is urging business owners not to share their EIN number, payroll records, employee information, banking details, or prior tax returns with any companies or individuals they have not vetted or personally know to be legitimate.