A new scam is tricking people into purchasing clean energy tax credits, according to the IRS.
A spokesperson for the IRS says unethical tax preparers are offering the tax credits to people who are not eligible for them.
“Some tax return preparers are tricking people into buying into clean energy tax credits and claim they can save money on taxes, but what most people don’t realize is they cannot use these credits to reduce their tax bills,” IRS spokesperson Octavio Sáenz said.
Saenz says these type of tax credits can only be used for passive income, so if you are caught using these credits, you could have to pay back a lot of money or be fined by the IRS.
Saenz recommends using electronic tax software, which are already adjusted to the IRS’ conditions.