Each year, the IRS releases a list of known scams and tax credit misuse called the Dirty Dozen. This annual compile warns taxpayers of things to watch out for, and what internet-popular ‘tricks’ not to try.
In 2024, this list includes misuse of the Fuel Tax credit.
What is the Fuel Tax Credit?
The fuel tax credit is a refundable tax credit created to provide relief to eligible taxpayers for federal taxes paid on fuel used for certain purposes.
Who was the Fuel Tax credit created for?
Primarily, the Fuel Tax Credit was established for businesses and individuals who utilize fuel for off-highway or non-highway activities. This includes but is not limited to farmers, construction companies, and certain government entities whose operations involve the use of vehicles and equipment that do not operate on public roads. Eligibility hinges on the specific use of the fuel and must comply with IRS guidelines.
What do I do if I filed for the fuel tax credit, but don’t fit the criteria?
Any claims made in error or outside the defined criteria can lead to serious consequences, including audits and penalties. Taxpayers who have erroneously claimed the credit should promptly amend their returns to rectify the mistake and repay any excess credit received. This proactive approach not only ensures compliance with tax regulations but also mitigates the risk of facing penalties or legal actions.
The best way to handle claims that don’t fit the criteria? Speak to a tax professional. Goldburd McCone, LLP, has a team of expert attorneys who can guide you through the qualifications and the process of amending any tax mistakes. Call us today at 212.302.9400 for your free case evaluation.