IRS Warns of Clean Energy Credit Scam
Misuse of Clean Energy Credits Leads to Financial Risks
According to BESTLIFE, the IRS has warned taxpayers about a scam involving the Residential Clean Energy Credit (RCEC) which encourages investments in renewable energy. This credit offering nonrefundable benefits for installing systems like solar panels and wind turbines is being targeted by fraudsters. In a July 3 press release the IRS highlighted that some dishonest tax professionals are misleading taxpayers by falsely claiming these credits leading to potential serious consequences.
Taxpayers can receive a 30% credit for installing qualified clean energy systems from 2022 to 2032 under the RCEC. Yet the IRS warns of scams using this credit improperly to reduce taxes as it’s only for passive income. Many are misled into expecting larger refunds, causing serious financial issues.
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(PHOTO: WIFR)
Protect Yourself: Seek Trusted Advice on Clean Energy Tax Benefits
IRS Commissioner Danny Werfel stressed the need for taxpayers to use reputable tax professionals and to understand the complexities of tax law to avoid falling victim to such scams. The IRS is closely monitoring these activities and is ready to penalize those who falsely claim these credits. Taxpayers who do so will be required to repay the inflated amounts with interest and additional fees. To avoid these problems, those interested in the RCEC should seek advice only from trusted and qualified tax experts to ensure they are following the correct guidelines and legitimately benefiting from clean energy incentives. This cautionary approach will help ensure that taxpayers can safely take advantage of the available tax benefits.
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