Purchased Tax Credits Only Offset Tax From Passive Income

IRS indicates there is a scam involving "purchased" energy tax credits.

Photo by Luca Bravo on Unsplash

The IRS has issued a scam alert on taxpayers claiming a tax credit for “purchased” tax credits under new rules from the Inflation Reduction Act (IRA).

The IRA allows taxpayers to sell or transfer their energy tax credits to other taxpayers. This was first allowed under the IRA act.