The IRS warns that some tax preparers are fraudulently claiming clean energy tax credits for ineligible clients, promising inflated refunds to make quick money, and advises taxpayers to verify their preparer’s credentials and stay informed about eligible credits to avoid scams.
IRS Warns of Tax Preparers Exploiting Clean Energy Credits for Quick Gains
According to Benzinga, the IRS has warned about tax preparers who are illegally claiming clean energy tax credits for people who aren’t eligible. These dishonest preparers promise bigger refunds or lower taxes to attract clients and might charge fees based on these inflated refunds. Tom O’Saben from the National Association of Tax Preparers said that these scams can lure people in with false promises, making the tax preparers more money in the short term.
Even though these tax preparers risk getting caught and facing legal trouble, some continue to cheat for quick financial gain. They may trick clients into thinking they are getting better tax credit benefits, leading to repeat business. However, these actions can lead to serious penalties and legal issues.
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3,000+ Taxpayers Warned: Be Cautious of Fraudulent Tax Preparers Exploiting Clean Energy Tax Credits – Must Know! (PHOTO: KEYT)
Protect Yourself from Tax Credit Scams – Verify Preparer Credentials and Understand Credit Eligibility
To avoid falling for these scams, taxpayers should check the IRS website to make sure their tax preparer follows the rules and has the right qualifications, like being a certified public accountant (CPA) or an enrolled agent (EA). It’s also important to understand which tax credits you are eligible for and to review your tax credit returns carefully. Staying informed and careful can help protect you from being tricked by dishonest tax preparers.
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