IRS Warning to Taxpayers to Watch Out for Third-party Promoters of False Fuel Tax Credit Claims   

The Dirty Dozen is an annual list of 12 scams and schemes that is published by the Internal Revenue Service (IRS) to alert taxpayers, businesses, and the tax professional community of current risks and nefarious schemes and scams in the areas of losing money, personal data and more. As part of this year’s Dirty Dozen tax scams, the Internal Revenue Service (IRS) is warning taxpayers to watch out for promoters pushing improper fuel tax credit claims that taxpayers aren’t qualified to receive. 

“People should watch out for erroneous fuel tax credit claims and the scammers that promote them,” said IRS Commissioner Danny Werfel. “These scammers will often charge a hefty fee for these bogus claims, and participants also face the possibility of identity theft. This is another example that people should always remember: Be wary if a tax deal sounds too good to be true.”

The IRS has seen an increase in the promotion of filing certain refundable credits using Form 4136, Credit for Federal Tax Paid on Fuels. In this scam, third parties are convincing taxpayers to fraudulently claim this credit with promises of  windfall refunds. Promoters are selfishly focused on their own gain, taking advantage of taxpayers by charging inflated fees, refund fraud and even identity theft. Should you find yourself in a situation where you claimed a credit to which you are not entitled to, you may face fines and even be subject to federal criminal prosecution and imprisonment. 

To report an abusive tax scheme or tax return preparer, mail or fax a completed Form 14242, Report Suspected Abusive Tax Promotions or Preparers and any supporting material to the IRS Lead Development Center in the Office of Promoter Investigations.

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