IRS Warned Again Of Homebuyer Credit Fraud (Congress, Whitehouse, cost)

[bentlebee]

WASHINGTON (Reuters) - The internal watchdog for the U.S. Internal Revenue Service is expected to warn the agency for the fourth time about fraud in the multibillion dollar homebuyer tax credit program, according to a report to be released at a congressional hearing later this week.

About 1.4 million tax returns have been filed to take advantage of the United States' $8,000 credit and many lawmakers want to extend the credit, which expires on November 30. It has cost the U.S. government about $10 billion.
------------------------------------
The inspector general found at least 70,000 tax credit claims, totaling $489 million, were granted to individuals who do not appear to qualify for it. These include those who had filed recent mortgage interest deduction forms, indicating they do not qualify.
------------------------------------

The agency has opened 107,000 civil cases related to the credit and identified 167 criminal schemes, he noted. In addition, "we have selected thousands of returns for those claiming the credit for deeper examination." he said.

http://www.nytimes.com/reuters/2009/...port.html?_r=2

[cleanhouse]

Originally Posted by bentlebee

WASHINGTON (Reuters) - The internal watchdog for the U.S. Internal Revenue Service is expected to warn the agency for the fourth time about fraud in the multibillion dollar homebuyer tax credit program, according to a report to be released at a congressional hearing later this week.

About 1.4 million tax returns have been filed to take advantage of the United States' $8,000 credit and many lawmakers want to extend the credit, which expires on November 30. It has cost the U.S. government about $10 billion.
------------------------------------
The inspector general found at least 70,000 tax credit claims, totaling $489 million, were granted to individuals who do not appear to qualify for it. These include those who had filed recent mortgage interest deduction forms, indicating they do not qualify.
------------------------------------

The agency has opened 107,000 civil cases related to the credit and identified 167 criminal schemes, he noted. In addition, "we have selected thousands of returns for those claiming the credit for deeper examination." he said.

http://www.nytimes.com/reuters/2009/...port.html?_r=2

Forget about extending it now.

The Whitehouse does not want to and once they hear about this its done Nov 30.

The housing correction will be back in full force and rightfully so.

[bentlebee]

Maybe now they will start to let the businesses and housing have resolve their own issues without governement interfering...cash for clunkers was only selling cars when people got money for it, than it stopped...the spending has to stop once and than the businesses that are bad will go out of usiness and others will become better...

[msina]

The IRS is examining the claims for the FTHBC. They send requests for documentation to prove eligibility such as HUD-1 documents and proof that applicants haven't owned a home in the past three years. Those that file fraudulant claims should be prosocuted. I filed for the FTHBC in June, I'm still waiting after repeatedly complying with all requests for additional documentation. I have faxed information to them repeatedly, (as one department doesn't seem able to access information already supplied to another) including,..........
HUD-1
Tax forms
Tax stamp
Tax bill
Quit claim deed
Lease and landlord verification