The Internal Revenue Service cautioned consumers Tuesday to beware of tax scams and inaccurate advice on social media that prompted thousands of taxpayers to file overblown claims and held up their tax refunds.
The scams center around the Fuel Tax Credit, the Sick and Family Leave Credit and household employment taxes. The IRS said it’s received thousands of dubious claims in which taxpayers seem to be claiming tax credits for which they’re not eligible. The tax refunds are being delayed and taxpayers now need to demonstrate they have legitimate documentation to support their claims.
The Fuel Tax Credit is supposed to be for off-highway business and farming use, and taxpayers need to have a business purpose and a qualifying business activity such as running a farm or buy aviation gasoline to be eligible to claim. Most taxpayers don’t qualify for this credit. A recent
Andrew Harrer/Bloomberg
The Sick and Family Leave Credit was available for self-employed individuals for 2020 and 2021 during the worst years of the pandemic, but it’s not available for 2023 tax returns. Nevertheless, the IRS said it’s seeing repeated instances where taxpayers are incorrectly using
