According to a report released today, nearly 1,300 prison inmates have improperly claimed nearly $9.1 million is tax credits. It has been discovered that at least 1,295 inmates have so far filed false tax returns to claim the tax credit.
The report states that 4,608 state and federal inmates have filed for these tax credits. Of those, 1,295 slipped through with tax credit checks being issued. Of the 1,295, 795 of the inmates are serving life sentences. Florida proved to be especially bad. Over 60% of the lifetime inmates who received the credits are currently imprisoned in Florida. That is really surprising an inmate would actually commit fraud with the IRS. Who could have ever seen that one coming?
In additionally, thousands other people have either filed multiple claims or made claims that were outside of the allotted time period. It is estimated that checks for more that $28 million has been improperly issued. The Treasury says that "Additional controls are necessary to address erroneous claims for the credit."
The home buyer tax credit program is only intended for a primary residence purchase with a binding contract written on or after April 8, 2008 and on or before April 30, 2010. The report also discovered that the IRS awarded $17.6 million to 2,555 filers who had bought their homes before the tax credit program had officially began. At least $1.4 million was awarded to 206 filers who had claimed the tax credit for multiple property addresses.
IRS employees also participated in the fraud. The report revealed that at least 87 employees of the IRS filed improper returns. Of the 87, 34 more recently discovered employees are in addition to 53 IRS employees that were identified improper filers last year.
The IRS stated that "has devoted substantial resources to working with state and federal prison systems to collect and maintain information on the prison population. The IRS will follow up on every instance of an improper prisoner payment and take swift and appropriate enforcement actions." Really what can the IRS do to someone already serving a life sentence. I guess the threatdepends on whether or not they have the possibility of parole.
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