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[Surprise] Unscrupulous individuals made fraudulent claims for home buyer tax credit

Charleston real estate home buyer tax creditWe've all heard about the 4 year old child who claimed the $8k first time home buyer tax credit but a new government report was recently released showing just how much money was improperly paid out by the IRS.

Apparently, the home buyer tax credit was so simple to defraud that prison inmates claimed $9.1 million and $17.6 million was paid out on claims for homes purchased before the effective dates. And in what should be no surprise to anyone, multiple claims for the same address were allowed. Oh by the way, it was also discovered that some IRS employees also improperly claimed the credit.

When you talk about government waste and the ever expanding budget deficit, this is simply amazing.

Photo courtesy of flickr by kangotraveler 

Published Saturday, June 26, 2010 6:04 AM by Howard Arnoff

Comments

# re: [Surprise] Unscrupulous individuals made fraudulent claims for home buyer tax credit

No one can tell me that they didn't see this day coming eventually.  Sad that this was so predictable.

Sunday, June 27, 2010 8:51 AM by Promotional Products

# re: [Surprise] Unscrupulous individuals made fraudulent claims for home buyer tax credit

You know, I am pretty amazed at how loose the system was and yes, no surprise that people would scam the system. But to get the money, you have to be a real person the IRS knows so they should be able to track you down and get it back or put you in jail. Of course, that wasn't much of a deterrent for those who were already in jail with some already sentenced to life imprisonment.

Monday, June 28, 2010 5:35 AM by Howard Arnoff

# re: [Surprise] Unscrupulous individuals made fraudulent claims for home buyer tax credit

It's amazing that prisoners were able to get away with claiming the tax credit. It's no wonder there was a rash of audits this year! You know, if the IRS employees are even going for it, you know it's easy to rip the government off blind.  

Saturday, July 03, 2010 12:55 PM by West Palmdale

# re: [Surprise] Unscrupulous individuals made fraudulent claims for home buyer tax credit

It's a shame that the legitimate buyers who qualified for the credit are going to have to jump through hoops in order to rightfully get their tax credit.

Saturday, July 03, 2010 2:37 PM by Howard Arnoff
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