This time, the Internal Revenue Service (IRS) is warning all taxpayers to be careful that they do not fall victim to a new scam that has emerged, involving the purchase of tax credits for clean energy, unscrupulous tax return preparers are entangling the rules for clean energy credits and telling people that they can receive credits for which they are not actually candidates, the IRS said in a statement.
The scam usually targets people who file the Form 1040 that is used to determine how much they owe the IRS or if they are due a tax refund, “This is another example in which fraudsters try to use the complexity of tax law to induce people to claim credits to which they are not entitled,” IRS Commissioner Danny Werfel said in a statement. “
Taxpayers should be wary of promoters who promote dubious loans like this and others. The IRS is on the lookout for this scam and we urge people to turn to a reputable tax professional before claiming complex credits such as the clean energy one.”
Be Careful: Scammers Are Targeting Taxpayers
The tax credits can only be acquired for income tax compensation for what the IRS calls “passive activity,” such as rental properties or certain limited partnerships. The vast majority of taxpayers have no passive income or passive income tax liability, the IRS said.
Making the application for these credits incorrectly can put the taxpayer in trouble with the IRS and could end up being responsible for reimbursing the inflated credit, plus interest and possible penalties, the recommendation made to taxpayers is to consult a professional in the tax field and be alert if someone makes the offer of credits for the purchase and reduction of their tax liability.
The clean energy credit scam is only the latest identified by the IRS. In the past, similar scams have involved the Fuel Tax Credit, the Paid Sick and Family Leave Credit, and domestic employment taxes.
New IRS Rules for Cryptocurrencies: Changes and Expectations
On its social networks, in recent weeks the IRS has received more than 44,000 comments on the proposed rules for 1099 reporting on cryptocurrency exchanges, now partially included in a comprehensive tax policy, effective from January 1, 2025. This has generated significant criticism and uncertainty among investors and traders about the content and application of these rules, and about how much taxes they will have to pay on their digital currency assets.
In 2024, the regulation of crypto-assets received a series of measures and changes both at the state and federal level. States such as Wyoming have moved forward with issuing stable tokens, while the SEC is preparing to approve ether ETFs.
This context has helped to clarify the regulatory and tax environment for cryptocurrencies. With approximately 15 million taxpayers affected and some 5,000 businesses set to comply, the role of the IRS and tax policy remains controversial in the cryptocurrency debate.
Implementation of the Standards
The legislation that allowed the IRS to establish more comprehensive standards for cryptocurrencies was included in the 2021 infrastructure bill. However, due to the resistance and the time needed to develop these standards, their implementation will begin in 2025 or 2026, depending on the type of crypto asset. The final rule for 1099 reporting on centralized exchanges will apply to transactions from January 1, 2025, although platforms such as Coinbase are already voluntarily complying.
In addition to the above, the cost base reporting requirements for centralized brokers, which have been the subject of protest, will come into force from the year 2026. Decentralized exchanges and non-hosted wallet providers will receive specific rules later this year. Real estate transactions with crypto assets will also be subject to new rules from 2026.
Exemption for Stable Currencies
Stablecoins, used as a medium of exchange and in the DeFi sector, have been mostly excluded from these rules, according to the SEC and the IRS. Retail investors earning less than $10,000 with stablecoins will not be required to report transactions.
On the other hand, high-volume investors will have to meet the complete requirements. The tax treatment and reporting guidelines for stablecoins may be revised if Congress passes specific legislation for them.