June 23, 2010
IRS Blocks 10% of First-Time Homebuyer Tax Credits After Audits
Great job, Democrats! Another huge program rife with fraud. John Gittelsohn of Bloomberg writes:
The Internal Revenue Service blocked almost 10 percent of U.S. claims for the first-time homebuyer tax credit after receiving erroneous or fraudulent filings, according to a report today.About $1.22 billion of the $12.6 billion in tax credits claimed through February were denied or frozen after audits, the report from the Treasury Department's Inspector General for Tax Administration said. The IRS estimated that about 1.8 million taxpayers sought the benefit, which totals as much as $8,000, from the inception in April 2008.The claims in question included about $9.1 million from 1,295 prison inmates, $18.8 million from people who bought homes before the law took effect and $134 million from situations where more than one filer said they bought the same house, the report said.