First-time home buyer tax credits claimed by “kids”
Kids may say the “darndest things,” but some grown-ups do the stupidest things. I recently read that the U.S. Treasury Department is investigating more than 580 first-time home buyer tax credit claims by “children” under the age of 18.
Total claims: nearly $4 million, with $627,000 having been doled out by the government to date. Among the claimants: a child 4 years of age.
Because age was not a screening factor, the Internal Revenue Service (IRS) failed to immediately identify applications coming from “children.” J. Russell George, Treasury Inspector General for Tax Administration, testified before a House Ways and Means Subcommittee last week that of the 580-plus children claiming the tax credit, 165 did not meet the IRS’ adjusted gross income screening criteria. This red flag is what brought further investigation.
Since the end of September, 167 suspected fraudulent claims have been identified by the IRS, with the agency opening more than 100,000 investigations of possible misuse of the first-time home buyer tax credit.
George also indicated that of the electronically filed 2008 tax returns of, more than 19,300 taxpayers claimed the credit on a future purchase of a home. The amount of those tax claims is more than $139 million.
The tax credit is slated to expire December 1. The Obama administration and a number of leaders in both houses of Congress are endorsing an extension of the tax credit.
Posted by Sharon Walker
[...] likely one of the main reasons for the delay is the egregious dishonesty of some home buyers. It’s unfortunate that an honest tax filer’s payout is being held hostage due [...]
January 20th, 2010 at 6:03 am