The IRS’s compliance efforts are primarily focused on biofuel tax credit claims made on form 8849, Schedule 3, certain fuel mixtures and the alternative fuel credit, and form 720, Schedule C, claims, and that “more effective efforts could be undertaken” to evaluate claims made on the form 4136, credit for federal tax paid on fuels.
Since the IG examined only a sample of tax credits claimed, the report didn’t analyze how many total taxpayers did not provide proper registration or certification when claiming biofuels credits.
The number of taxpayers not providing registration numbers of biofuels certificates could be much higher, as the analysis represents just a small fraction of more than 30,000 claims.
The IG report said the highest biofuel tax credit claims have been made using the form 8849, schedule 3.13 specifically from tax years 2019 through 2022, the report said.
Almost 1,500 claims were made for more than $3.5 billion using form 8849, according to the report. During the same period more than 16,000 claims totaling more than $600 million were made on form 4136. Almost 12,000 claims were made for about $100 million on form 8864 and more than 2,000 claims for about $33 million were made on form 6478.
“The IRS is not using all of the compliance tools to…
