A warning to small business owners to be careful in claiming business credits.

A “dirty dozen” scam is currently circulating in which unscrupulous preparers urge the business owner to take improper tax credits, primarily in two areas. The first is the fuel tax credit. This is only allowed for fuel used in off-road business or farming activities. The scammer will urge the owner to report much of his normal business gasoline as qualifying for the credit. The second is the research credit. This involves claiming non-qualifying expenses, failure to even participate in a research activity and/or failure to meet the requirements for the activity to be qualified. The scammer will get a high fee to get this great “refund” that will be lost if the return is audited. If you did this on your 2015 return, I urge you to let us or a qualified accountant prepare an amended return for you.