Thursday, October 22, 2009

C'mon can't a 4 yr old enjoy the benefits of homeownership?

Like many good intentioned plans, the first time homebuyer tax credit was swamped by people looking to game the system.

Now comes confirmation that the IRS is struggling to keep up with the suspect claims that were filed.

"Tens of thousands of people may have taken advantage of the first-time home buyer tax credit to defraud the government, an IRS watchdog office said Thursday, in testimony that could jeopardize efforts to extend the popular program.

Treasury Inspector General for Tax Administration J. Russell George told a House panel that more than 19,000 people filed 2008 tax returns claiming the credit for homes they had not yet purchased. Russell said his office had identified another $500 million in claims, by some 74,000 taxpayers, where there were indications of prior home ownership.

He told a House Ways and Means oversight subcommittee that they also found 580 taxpayers under the age of 18 who claimed $4 million in first-time home buyer credit. One was 4 years old."

Give an inch and they'll take a mile. Another reason to tell the NAR and NAHB that the tax credit has to die on the vine.

1 comment:

The Hermit said...

Wow, I want to meet that 4 year old tycoon. In another 14 years, he could become a politicain and really rake in the bucks.
Ya gotta love this great country.