FIRST-TIME FRAUDSTERS
Rated • 1 review • bizarre • ncpa.org
From the page: "For example:
* The Treasury's inspector general for tax administration, J. Russell George, recently told Congress that at least 19,000 filers hadn't purchased a home when they claimed the credit.
* For another 74,000 filers, claiming a total of $500 million in credits, evidence suggests that they weren't first-time buyers.
Among those claiming bogus credits, at least some of them were definitely first-timers, says the Journal:
* The credit has already been claimed by 500 people under the age of 18, including a four-year-old.
* This pre-K housing whiz was likely the buyer because his parents make too much to qualify for the full credit, which starts to phase out at $150,000 of income for couples, $75,000 for singles.
As a "refundable" tax credit, it guarantees the claimants will get cash back even if they paid no taxes. A lack of documentation requirements also makes this program a slow pitch in the middle of the strike zone for scammers. The Internal Revenue Service and the Justice Department are pursuing more than 100 criminal investigations related to the credit, and the IRS is reportedly trying to audit almost everyone who claims it this year."
