IRS Warns of New Scam Involving Clean Energy Tax Credit

The victims are being lied to about a clean energy tax incentive they may end up having to pay back, with penalties.

Wind turbines located at the Block Island Wind Farm near Block Island, Rhode Island, on July 7, 2022. John Moore/Getty Images

The Internal Revenue Service (IRS) is warning taxpayers of a new scam involving the purchase of clean energy tax credits.

In a notice published July 3, the IRS said it’s seeing cases where fraudulent tax-return preparers lie to their clients about claiming clean energy credits under the Inflation Reduction Act (IRA).