The Internal Revenue Service is issuing a sharp warning to taxpayers, businesses, and tribal communities about an aggressive new tax scam. Federal officials say promoters are selling fraudulent “Tribal Tax Credits” that do not exist under federal law.
Scammers are marketing these schemes under names like “Native American Tax Credits” or “Sovereign Tribal Tax Credits,” falsely promising they will slash tax liabilities or trigger massive refunds. Promoters often pressure victims to buy these fake credits through entities claiming to be connected to tribal communities.
IRS Chief Executive Officer Frank J. Bisignano says the agency will always confront illegal schemes that undermine confidence in the tax system. Officials emphasize that taxpayers are legally responsible for everything on their returns, regardless of who prepared them. Anyone caught claiming these nonexistent credits faces severe civil and criminal penalties. This includes paying the correct tax owed, interest, hefty fines, and potential imprisonment.
