The Professional Beauty Association (PBA) is urging licensed professionals to be aware of a scam currently targeting our industry.
Salon owners have recently received emails and text communications claiming the 45b FICA Tip Tax Credit is a free money program, and the IRS will send cash refund checks for multiple past years.
The 45b FICA Tip Tax Credit, now available to the professional beauty industry, is a tax credit not a refund program. To be clear, the 45b FICA Tip Tax Credit can reduce income tax liability for those that are eligible and qualify but does not produce direct repayment from the IRS. Any message promising “large refund checks” or “cash from the government” is false. The beauty industry only became eligible in July 2025, which means any claims stating eligibility for past years such as 2022 or 2023 for example are false.
Any company offering to file for earlier years is either misinformed or intentionally misleading.
Common Scam Phrases You May See:
- Free government money
- Refund checks from the IRS
- Covered for 4 years
- Guaranteed approval
The PBA advises you do not share your EIN number, payroll records, employee information, banking details, or prior tax returns with any companies or individuals you have not vetted or personally know to be legitimate.
For more information, please contact Myra Reddy, PBA Director of Government Affairs at myra@probeauty.org.
