Sunday, October 25, 2009
Looking to buy (photo: Mark's sister Donna)
The First-Time Homebuyer Credit program has been declared a success by its supporters, who want Congress to extend it past its December 1 expiration. But its “success” was due in part to thousands of Americans who exploited the $8,000 tax credit even though they were unqualified to receive it.
An audit by the Treasury Department’s inspector general found nearly 20,000 taxpayers claimed $139.4 million in credits for homes they promised to buy, but didn’t. Another 70,000 taxpayers claimed almost $480 million in credits, despite questions about whether they really were first-time homebuyers. The auditor’s report noted that 582 taxpayers under 18 years of age claimed almost $4 million in First-Time Homebuyer Credits, including one who was only four years old.
-Noel Brinkerhoff
Stim Bucks for Home-Buying Tots (by Christopher Flavelle and Sabrina Shankman, ProPublica)
The Internal Revenue Service Faces Significant Challenges in Verifying Eligibility for the First-Time Homebuyer Credit (Treasury Inspector General for Tax Administration) (PDF)
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