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By Aliss Higham
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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 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.
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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.
What to Know
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.
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Fuel Tax Credits
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 details such as the make, model and type of machinery or vehicle for which the fuel was purchased. The statement should be completed and attached to Form 1040 with Form 4136.
Those who incorrectly claim the credit can be subject to a penalty of $5,000 per person - so $10,000 for a married couple who file jointly.
'Ghost Preparer' Education
The IRS has said it will send letters to taxpayers whose tax returns appear to have been completed by a paid tax preparer who did not sign or include their preparer tax identification number (PTIN) on the tax return. Ghost preparers often file inaccurate returns to secure inflated refunds, then disappear, which leaves taxpayers liable for the errors.
These letters aim to educate taxpayers about the risks of using such "ghost preparers" and assist the IRS in identifying those preparing returns without signing them.
Preparer Tax Identification Numbers
During the 2025 filing season, the IRS will be working to add more protections for tax professionals. The protections will be aimed at protecting the tax professional's electronic filing identification number or EFIN and PTIN from unauthorized use, with more details on these set to be released "in the near future."
What People Are Saying
IRS commissioner Danny Werfel said in a release issued on January 14: "Since its creation, this special group across the tax community has been working to take extra steps to protect taxpayers and the tax professional community. This effort includes expanding outreach and education on emerging scams, developing innovative approaches to identify potentially fraudulent returns at the point of filing and creating infrastructure improvements to protect taxpayers as well as federal, state and industry tax systems."
What's Next
Tax season opens officially on January 27, with federal returns due by April 15.
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