Recent reports from the Inspector General are indicating that as many as 47,000 fillings to the IRS for the First Time Homebuyer Tax Credit may have been fraudulent. If correct this would represent approximately $513,000,000 of taxpayer money that was awarded to Homebuyers that did not really qualify for the First Time Homebuyer Tax Credit.
The Justice Department began an investigation this past February to track down fraudulent claims from across the country. As a result of this investigation several tax preparers have been sued nationwide, and six major lawsuits have be filled to stop what they are referring to as "Taxation Lapse Preparers" from "fraudulently claiming a first-time home customer taxation credit and a earned-income taxation credit." I expected that the First Time Homebuyer Tax Credit would have generated fraudulent activity, but never did I think that it would have reached this level. This type of fraudulent activity is unacceptable, and I hope that everyone that is caught is prosecuted to the full extent of the law.
The First Time Homebuyer Tax Credit generated business for me, and I for one saw it as a positive program, but I had hoped that it would have started more of a spark in the Real Estate Industry than it did. I am sure that we will be hearing more about this as these lawsuits progress, and more fraud is unveiled.
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George,
Staggering number there, like you I knew it would be taken advantage of but never....
Patrick
George....why am I not shocked at those figures....if their is a way to try and beat the system their are people who will try...shame on them.
George , this is just so crazy our Government spend money so recklessly, and doesn't seam to have simple measures in place to identify fraudulent activities. I dealing with a lender right now that can't see their way clear to a good deal...after financing a bad deal that got us in the trouble in the first place.
Patrick, yes that much was a surprise.
Dennis you are right and I hope they get the book thrown at them.
Steve, the fact that they did not have the system in place to prevent this, just seems to be par for the course with everything they do.
George, where there's a way to scam the system there will be people that try. Like you I didn't think the numbers would be that high.
Unbelievable George! And so sad, that people would take advantage of something like this and take from people who truly needed the help. Unbelievable.
Disgusting! How do people sleep?
George, I had seen this some time ago, and it's not that hard to believe. So many people know how to game the government, and they know there are so few people that really care in government service that they can get away with it. There's no accountability
George,
This reminds me of a conversation I had earlier last year with someone who was purchasing a second home...I believe there was a second home or move up tax credit, but not as much. I hope that those figures are wrong, but no, I am no longer amazed:(
George - To commit fraud over so little gain is really a sign of stupidity,not just a lapse in moral judgment. Can you imagine being in zebra stripes telling another inmate that you're doing time for defrauding the Federal government of $7,500? At least the banksters on Wall Street can brag that they defrauded the taxpayers of billions...but wait a minute, they didn't go to prison, did they? ;)
George,
Why can't people use their brains for good instead of for fraud?
Ann Hayden in Wildwood, MO
Talk about having some balls George! The IRS is something I would never want to fool around with.
Nick yes that was a little bit of a surprise
Al and Peggy, they are not only taking from them but from all of us who are taxpayers
Kelly I don't know. I know I could not if I did something like that.
Ed hopefully they will not get away with this.
Karen I expected some fraud but not this much.
Gail no they did not go to prison but they should have. And I agree it is very stupid to risk so much for so little.
Ann, you are right can you imagine what a better world this would be if they did.
Bill you and me both.
This is a great post George. Of course with something good there has to be scam artists that have to work the system to make it bad. I hope they're caught and prosecuted.
George,
It would be a wonderful place!
Ann Hayden in Wildwood, MO
George, Wow! I can't even imagine how this happened. Too much government? LOL!
George -- I am not surprised by this type of thing anymore. Everywhere you turn you hear about people scamming and committing fraudulent activity. I hope they all get caught and the IRS takes care of them big time because it's just not fair for those of us who abide by the rules and then have to pay more for their nonsense.
George,
The systems probably were not all that well thought out of from the beginning and plenty people saw an opening for shenanigans. Hopefully all the frauds get stretched on the rack.