The IRS warned taxpayers, tribal communities, businesses and tax professionals about promoters selling fake “Tribal Tax Credits” that do not exist under federal law. Promoters may claim these credits can reduce tax liabilities or generate refunds, but taxpayers who claim them may face civil and criminal penalties. Promoters may encourage taxpayers to purchase purported credits from an entity they claim is associated with a tribal community and pressure taxpayers to act quickly. A tax return claiming a nonexistent Tribal Tax Credit contains a false claim, regardless of whether a refund was issued. Taxpayers are responsible for the accuracy of information reported on tax returns. Participating in an abusive tax scheme can result in the assessment of the correct tax owed, penalties, interest, fines and imprisonment. Tax professionals should be cautious if approached by promoters. Taxpayers and tribal communities can use Form 14242, Report Suspected Abusive Tax Promotions or Preparers, to report suspected schemes.

IR-2026-112