Lies About Business Tax Credits Earn A Spot on the "Dirty Dozen" List

         The Internal Revenue Service (IRS) continues to strenuously warn taxpayers against claiming Business Tax Credits for which their companies do not qualify for. This is a tactic commonly used by Tax Preparers who are not to be trusted. This is a practice seen often, which is why falsely claiming Business Tax Credits has a spot on the IRS 2019 “Dirty Dozen” list.

          There are two credits that are often claimed irresponsibly. One is the Research Credit, which is used to support scientific experimentation that improves a product or process used in the business. There are very specific guidelines that must be followed in order to successfully claim this credit and if there is no supporting documentation, failure to do so will lead to the claim being rejected. The Fuel Tax Credit is even more difficult to claim. It’s basically limited to use of farming or other vehicles not used on highways. With these stringent rules and updated IRS processing protocols, scams using these Tax Credits are being brought to light and prosecuted much more quickly. Stay away from these schemes and remember that you, the Taxpayer, are always responsible for what is on your Tax Return.

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