The Internal Revenue Service has announced a raft of changes for the 2025 tax filing season to help combat scams and fraud, following false claims on social media.
The misinformation meant thousands of taxpayers filed inflated refund claims—for Fuel Tax Credit, Sick and Family Leave Credit and household employment taxes—during the past tax season, according to the IRS, leading to refunds being delayed.
False claims risk well-meaning taxpayers financial penalties, while often benefiting unethical tax preparers.
The new changes come ahead of the opening of the tax season on Monday, January 27.
The IRS said in April that it had seen an "increased number of fictitious claims for fuel tax credits," with so-called "ghost preparers" pushing people to take advantage of tax credits and benefits they don't qualify in exchange for a fee.
Tax officials hope the new changes, detailed below, will help counter the practice.
A new form will be required for those wishing to file for Fuel Tax Credits on their Form 1040 Individual Income return. FTCs can be claimed on nontaxable use of gasoline, aviation gasoline, undyed diesel fuel or undyed kerosene, and can only be claimed by those own or operate a business and meet certain requirements, such as running a farm or purchasing aviation gasoline.
The form, "Statement Supporting Fuel Tax Credit (FTC) Computation – 1," can be found in the instructions for Form 4136 for tax year 2024. It will require...
The Internal Revenue Service has announced a raft of changes for the 2025 tax filing season to help combat scams and fraud, following false claims on social media. Why It Matters The misinformation...