Scam Warning: Fake “Tribal Tax Credits”
The IRS warns that "Tribal Tax Credits" do not exist. Anyone selling them is running a scam, and claiming one on your tax return can lead to penalties.
What you need to know
- There is no such thing as a “Tribal Tax Credit”, “Native American Tax Credit” or “Sovereign Tribal Tax Credit” under federal law.
- Scammers sell these fake credits, often saying they come from a company connected to a tribe, and promise a big refund or a lower tax bill.
- Warning signs: pressure to act fast, being asked to sign a secrecy (nondisclosure) agreement, or being told the IRS already accepted the credit on an earlier return.
- Putting one of these credits on your tax return is a false claim. You could owe the tax back, plus penalties and interest.
- If someone offers you one, do not buy it. You can report it to the IRS on Form 14242.