The IRS has issued a warning against falling for scams involving so-called "Tribal Tax Credits," "Native American Tax Credits," and "Sovereign Tribal Tax Credits". Though these scams may present plausible-sounding references to legal concepts, the IRS has confirmed that federal tax law does not in fact recognise such credits, and participation in these fraudulent schemes may result in penalties, interest, fines, and potentially criminal consequences.
Tax scams rarely walk into an accounting office wearing a sign that says “fraud.” The better ones arrive with citations, legal-looking documents, familiar tax terminology and a promise that someone has found a provision everybody else somehow missed. That...
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