8000 Tax Credit Tax hoax?
As with many good things in life – there are always a few public who are doing what they shouldn’t. In that case, there are quite a few public claiming that they are eligible for the 8000 tax credit when in fact they are not eligible for whatever reason.
If someone tries to claim the 8000 tax credit and is not eligible, that is considered tax cheat.
And according to the AP, there are more than just a few folks who are trying to claim the tax credit that shouldn’t be.
Treasury Inspector General for Tax Administration J. Russell George told a House panel that more than 19,000 society 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.
But that isn’t the only way that some society are trying to defraud the system:
George said his office had identified another $500 million in claims, by some 74,000 taxpayers, where there were
indications of prior home ownership.
And even more shocking – there were more than just a few humans who were under the age of 18 (and as young as 4!) who tried to claim the tax credit:
He told a House Ways and Means oversight subcommittee that they additionally found 580 taxpayers under the age of 18 who claimed $4 million in first-time home buyer credit. One was 4 years old.
With the recent announcement of the extension and expansion of the 8000 tax credit, one can only hope that there are more controls in place to catch these kinds of frauds. According to Mr. George, the IRS has tightened up on the controls they had in place:
George said that while the IRS has since taken steps to tighten oversight, “some key controls were lost to prevent an individual from erroneously or fraudulently claiming the credit.”
Let’s hope so. Losing a few hundred million to hoax isn’t precisely the thing that is going to be what bankrupts the country…
But it certain doesn’t help our overall financial situation.
Orginal post by Justin McHood
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