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Trick or treat? Don’t get tricked by tax credit scammers

October 29, 2026

from the IRS

Tricks may be fun for Halloween, but not when it comes to tax scams. Scammers can use misleading information about claiming certain tax credits to trick taxpayers into thinking they’re eligible, when they’re not. Incorrect or false claims can lead to penalties, so it’s important to know the warning signs. Here are some examples of common schemes.

Common tax credit schemes

Fake credits: Recently, scammers have been promoting and selling non-existent “Tribal Tax Credits” or “Native American Tax Credits.” These credits are fake and don’t exist. Promoters of these credits encourage taxpayers to purchase credits to falsely reduce their tax liability or generate large refunds.

Another bogus credit to watch out for is, a broad “self-employment tax credit” which can lead to inaccurate filings. While self-employed individuals may qualify for certain credits, there is no one “self-employment” tax credit. Taxpayers should rely on trusted sources like Publication 334, Tax Guide for Small Business (For Individuals Who Use Schedule C) and qualified tax professionals, not social media promotions, when determining eligibility for credits.

Misuse of Fuel Tax Credit: Scammers may promote taxpayers to claim the Fuel Tax Credit. Most taxpayers are not eligible for this credit. It is generally available to business owners that meet certain requirements such as non-taxable off-highway business use.

Know the red flags

Taxpayers, businesses, tribal communities, and tax professionals should be aware of warning signs of an abusive scheme, including:

  • Promises for larger refunds or tax savings
  • Offers to purchase tax credits for substantially less than their value
  • Claims there’s only a limited number of credits available or that taxpayers must act fast
  • References to government or interagency agreements that aren’t publicly available
  • Legal opinions that can’t be verified directly with the attorney or law firm identified
  • Requests to sign a nondisclosure agreement before receiving basic information about the credit
  • Using misleading information on social media to promote fake credits or misuse of credit

How to report tax scams

  • Taxpayers with information about tax fraud or other illegal tax-related activity can report it at IRS.gov/submitatip
  • For more information about common tax schemes and scams, visit Tax Scams on IRS.gov