Scammers Targeting Unsavvy Energy Tax Credit Buyers, IRS Warns

Scammers are leveraging the complexity of new energy tax credit transfer rules to trick buyers into purchasing credits that they aren’t eligible to claim, the IRS warned Wednesday.

According to the agency, “unscrupulous tax preparers” are targeting individuals who file Form 1040s and having them improperly claim IRA credits to offset taxes on income from sources such as wages, Social Security, and retirement account withdrawals.

The 2022 tax-and-climate law known as the Inflation Reduction Act established new energy tax credits, beefed up existing ones, and added new rules letting energy developers effectively sell credits to companies looking to reduce their ...