The IRS is tightening its rules for the 2025 tax season, with the agency announcing on Tuesday that it will be targeting scams and fraudulent claims with enhanced oversight and penalties.
The IRS announced on Jan. 14 that it will implement new measures targeting fraudulent activities, including requiring taxpayers claiming the Fuel Tax Credit to provide a detailed eligibility statement. Additionally, the agency will intensify its review of tax returns with substantial amounts reported under “Other Withholding” on Form 1040, aiming to identify and prevent improper claims.
IRS Commissioner Danny Werfel said the changes are part of broader efforts to protect taxpayers and safeguard the integrity of the tax system ahead of the upcoming filing season….