Publication date: November 2, 2026

What it is

The IRS is warning taxpayers about fake tax credits being sold on social media. In a tax tip released October 29, 2026, the IRS said scammers are promoting credits that do not exist, and that claiming them can lead to penalties.

This matters right now because the claims are being marketed heavily online, and they are aimed at people who are already stressed about money, refunds, or a tax bill.

What the IRS says

In Tax Tip 2026-78, released October 29, 2026, the IRS named several specific schemes.

Fake credits. The IRS said scammers have recently been promoting and selling non-existent “Tribal Tax Credits” or “Native American Tax Credits.” The IRS stated plainly that these credits are fake and do not exist. Promoters encourage taxpayers to buy the credits to falsely reduce tax liability or generate large refunds.

The IRS also flagged a broad “self-employment tax credit” as bogus. The IRS noted that while self-employed individuals may qualify for certain credits, there is no one “self-employment” tax credit. For real guidance on business credits, the IRS points to Publication 334, Tax Guide for Small Business.

Misuse of the Fuel Tax Credit. The IRS said scammers may push taxpayers to claim the Fuel Tax Credit even though most taxpayers are not eligible. The credit is generally for business owners who meet certain requirements, such as nontaxable off-highway business use.

On its official Fuel Tax Credit page, the IRS states that an incorrect claim can result in a penalty of $5,000, and warns taxpayers not to rely on social media tax advice when deciding whether to claim it.

Red flags the IRS lists. The IRS said taxpayers, businesses, tribal communities, and tax professionals should watch for:

• Promises of larger refunds or tax savings
• Offers to purchase tax credits for substantially less than their value
• Claims that there is only a limited number of credits available, or that you must act fast
• References to government or interagency agreements that are not publicly available
• Legal opinions that cannot be verified directly with the attorney or law firm named
• Requests to sign a nondisclosure agreement before receiving basic information about the credit
• Misleading social media posts promoting fake credits or misuse of a credit

What this may mean for you

If someone is selling you a tax credit, that is the warning sign. Real tax credits are claimed on a tax return based on your actual facts, not purchased from a promoter.

A discount price is another warning sign. So is urgency, secrecy, and any request to sign an NDA before you can see basic details.

The IRS is clear that incorrect or false claims can lead to penalties, which means the person who signs the return carries the risk, not the promoter who sold the idea.

What to do now

Do not buy a tax credit from anyone. Do not claim a credit because you saw it on social media, in a text message, or in a group chat.

If a credit sounds unfamiliar, check it against an official IRS page or ask a qualified tax professional before it goes on a return.

If you already claimed one of these credits and you are worried about it, you can fix it. The IRS says taxpayers who received Notice CP321C or who mistakenly claimed the Fuel Tax Credit can amend their return. If you received a notice, follow the instructions on it.

If you have information about tax fraud or illegal tax activity, the IRS says you can report it at IRS.gov/submitatip.

Official sources

IRS Tax Tip 2026-78, “Trick or treat? Don’t get tricked by tax credit scammers,” October 29, 2026:
https://www.irs.gov/newsroom/trick-or-treat-dont-get-tricked-by-tax-credit-scammers

IRS, Fuel Tax Credit:
https://www.irs.gov/credits-deductions/businesses/fuel-tax-credit

IRS, Recognize tax scams and fraud:
https://www.irs.gov/help/tax-scams/recognize-tax-scams-and-fraud

IRS, Report fraud (IRS.gov/submitatip):
https://www.irs.gov/help/report-fraud

IRS, Publication 334, Tax Guide for Small Business:
https://www.irs.gov/publications/p334

We are here to help

Dream Tax Service, Inc. is here to help. Call 404-207-7829 or visit dreamtaxservice.com.

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