US Tax Dollars pay prison inmates over $9M in Homebuyer Tax Credits
According to Treasury Inspection General for Tax Administration (“TIGTA”) “Additional Steps Are Needed to Prevent and Recover Erroneous Claims for the First-Time Homebuyer Credit.
“A breakdown in fraud controls allowed prison inmates to apply for and receive $9.1 million in homebuyer tax credits from the federal government, according to an audit conducted by the Treasury inspector general for tax administration.”
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If you have ever been audited by the I.R.S. then you may have experienced pain-staking efforts to “justify” a $150 expense for a client dinner. If you are like me, then you may feel tax auditors could better serve the bottom line by spending time tightening fraud controls to prevent real life “thieves – criminals – prison inmates” from leveraging government programs that they do not qualify for … and leave the hard-working and honest tax payers alone.
Where there is a will … there is a way. Or, where there is a way, prison inmates will find it!
The audit found that more than 1,200 prison inmates, including 241 serving life sentences, cashed in on the home purchase tax incentive. Those serving a life sentence were granted a whopping $1.7 million. Over $17 million in claims were for homes that were actually purchased before the tax credit program began.
Richard Byrd, commissioner of the IRS’ wage and investment division, says the IRS has worked diligently to ensure that the millions of taxpayers who are eligible for the federal tax credit receive it. Over 1.8 million taxpayers have received over $12.6 billion in home buyer tax credits, Byrd noted.
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*Tax Dollars pay prison inmates over $9M in Homebuyer Tax Credits*Tags: certified hafa specialist, Homebuyer tax credit, San Jose short sale specialist