A little longer post than usual ... about the home buyer credit

Wow. I knew that there was fraud in the new home buyer credit, but this is ridiculous!

• 19,351 taxpayers claimed $139.4 million in credits for homes they had not yet purchased but would allegedly purchase in the future.
• 70,005 taxpayers claimed more than $479 million in credits, despite indications that they were not first-time homebuyers.
• 582 taxpayers under 18 years of age who claimed almost $4 million in First-Time Homebuyer Credits. The youngest taxpayers receiving the Credit were 4 years old.

"Steps taken by the IRS prior to the 2009 filing season were not sufficient to prevent waste, fraud, error and abuse," commented J. Russell George, the Treasury Inspector General for Tax Administration. "The IRS should immediately implement TIGTA's recommendations in order to prevent further fraud and abuse of First-Time Homebuyer Credits."

Here is the full text of the testimony before Congress.

Owen S. Arnoff, Enrolled Agent
Admitted to Practice Before the Internal Revenue Service
http://www.betterbusinessventures.com
Sacramento Tax Consulting
Sacramento Tax Preparation
Sacramento Tax Representation
IRS Tax Help, Bookkeeping Services, Payroll Services