Possibly Tens of Thousands of Fraud Cases in $8,000 First Time Home Buyer Tax Credit

Posted on October 22, 2009

From AP via Breitbart:

Treasury Inspector General for Tax Administration J. Russell George told a House panel that more than 19,000 people filed 2008 tax returns or amended returns claiming the credit for homes they had not yet purchased. Those claims amounted to $139 million and it was not clear that the IRS planned to go back to verify that those purchases actually took place, he said.

George said his office had identified another $500 million in claims, by some 74,000 taxpayers, where there were indications of prior home ownership.

How did this happen?  Apparently the IRS said it did not have the ability to electronically confirm that the houses had been purchased, so the people filing claims for the tax credit were NOT required to submit documentation proving such. 

There were also 580 claims submitted by people under the age of 18, the youngest being 4 years old.

The tax credit is being paid for from funds in the $787 billion stimulus bill passed earlier this year.  The 1.5 million claims processed so far represent about $10 billion.

Despite the large amounts of fraud, Congress is looking to extend the length of the program which is currently slated to end Nov. 30.

First cash for clunkers, now this.  Why do so many people think our government will be able to handle a huge health care system for millions of Americans?

Posted in: Congress, Economy