Volkswagen not only has a problem with the U.S. Environmental Protection Agency, it now has a problem with the U.S. Internal Revenue Service.

VW certified its diesel-powered cars as being eligible for a clean energy tax credit for buyers in 2009 and 2010, and some 60,000 Volkswagen owners claimed a $1,300 credit on their taxes. “The vehicles in which Volkswagen installed ‘defeat devices’ included those that the company certified as qualifying for the advanced lean-burn technology,” Senators Orrin Hatch (R-Utah) and Ron Wyden (D-Oregon) of the Senate Finance Committee said in a joint statement. “This activity raises questions of whether Volkswagen made false representations to the U.S. government in its certification for federal tax subsidies.”

Senator Wyden says purchasers of the vehicles who declared a tax deduction are not at risk for having to pay any penalties.

For more on this story, click Volkswagen Now Investigated for Fraud on Buyers’ Environmental Tax Credits