Abuse of the Fuel Tax Credit (FTC) is on the IRS’s 2023 Dirty Dozen list of the worst tax scams, yet little is done to stop it. That’s according to audits by the Treasury Inspector General for Tax Administration (TIGTA). This credit is for the nontaxable use of certain fuels by taxpayers with a business purpose (such as a farm). Claiming the FTC without a business purpose can lead to a $5,000 penalty for frivolous filing. However, no certification of the purpose is required. That has led to a high volume of FTC claims that are ineligible, but rarely penalized, said TIGTA. The IRS has only agreed to partial fixes recommended by TIGTA. Here’s the report: https://bit.ly/3ZIEsLZ
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