The IRS is warning tribal communities and businesses about promoters selling fake “Tribal Tax Credits,” “Native American Tax Credits” and similarly named credits. No such federal tax credits exist. Promoters may claim you can purchase the credits to reduce your federal tax bill or generate a refund, sometimes pressuring you to act quickly. Other red flags include offers to buy credits for substantially less than their purported value and references to government agreements that aren’t publicly available. Claiming a nonexistent credit can result in additional taxes, interest, penalties and potentially more serious consequences. Contact us before acting on an unfamiliar tax-credit offer.
