IRS Warns Taxpayers: These ‘Tribal Tax Credits’ Don’t Exist

The IRS is warning taxpayers about promoters selling supposed “Tribal Tax Credits,” “Native American Tax Credits” and “Sovereign Tribal Tax Credits.” The agency says these federal credits do not exist and warns that taxpayers who claim them could owe additional taxes, penalties and interest and potentially face civil or criminal consequences. Miro Vrlik Photography/Shutterstock

The Internal Revenue Service is warning taxpayers, businesses, tribal communities and tax professionals about promoters selling supposed federal tax credits that the agency says don’t exist.

The schemes are being marketed under names including “Tribal Tax Credits,” “Native American Tax Credits” and “Sovereign Tribal Tax Credits,” according to the Internal Revenue Service. Promoters claim taxpayers can purchase the credits and use them to reduce federal tax liabilities or generate refunds.