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First-Time Homebuyer Tax Credit A Magnet For Fraudsters

The $8,000 first-time homebuyer tax credit has been a target for fraudulent claims. There have

tax credit been more then 90,000 fraudulent claims made including those made by former homeowners and children.

Eligibility for the tax credit issued by the Obama Administration extended to those who has not owned a primary residence in the last three years and earned less than $75,000 as an individual or $150,000 as a married couple.

The IRS has discovered 167 criminal schemes, opened 115 criminal investigation and has temporarily frozen more than 1110,000 refunds. They found that 582 supposed first-time home buyers were under the age of 18 and 73,7999 claims belonged to people who already owned a home.

Through late August more than 1.4 million claims have been made towards the tax credit.

Posted by Adam Brett - Fullerton, California Realtor on 10/27/2009 01:16 AM

Comments (4)

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4 Comments on First-Time Homebuyer Tax Credit A Magnet For Fraudsters

OCT

The IRS's form for the credit was promulgated very quickly due the time frame Congress approved the credit.

The IRS did not make eligibility as abundantly clear as it should have been and they did not require any form of documentation be sent in along with the form.

The extent of the fraud is not the fault of the program idea itself. It is the fault of IRS (or the Congress) for not requiring documentation.

Call this no-doc fraud.

Same song as the mortgage crisis, second verse.

The fundamental problem is same in both: Many Americans are simply dishonest.

Wow we sure know how to ruin a good thing, ehhh?

Adam: The solution would seem simple enough. Get the IRS to shape up and DEMAND proper documentation, and prosecute the heck out of those who commit fraud. Make their "sentence"... the taking away of their home... or at least put a tax lien on their home... and do it with triple damages. Then... publicize it widely that this is the risk you run for commiting fraud.

Then... extend the program... just as it is... for six or nine more months.

NOV

What an awesome post!Thanks for your sharing!~~~ Nike Dunk SB

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