Columbia, SC (WOLO) — The internal revenue service is warning taxpayers about an emerging scam involving buying clean energy tax credits.
The scam is generally targeting individuals who file form 1040. The preparers file returns that have individuals improperly claiming ira credits that offset income tax from sources such as wages, social security and retirement account withdrawals.
Individuals purchasing tax credits under the IRA are subject to the passive activity rules for any purchased credits. Generally, this means they can only use purchased credits to offset income tax from a passive activity.
