Prison Inmates Claimed Tax Credits, Audit Shows

Posted by Orb Staff on June 23, 2010 No Comments
Categories : Residential Mortgage

inmates filed an estimated $9.1 million in fraudulent claims tied to the first-time home buyer tax credit, the Treasury Department's inspector general for tax administration reveals in a new report. According to the inspector general's June 17 preliminary report, while the Internal Revenue Service (IRS) has taken ‘a number of positive steps to strength controls and help prevent inappropriate credits from being issued,’ control weaknesses allowed for the fraudulent claims. The report also states that multiple claims for the same home were allowed, and that $17.6 million in claims were allowed for homes purchased prior to the dates allowed by the law. Many questionable claims for the credit made on amended tax returns were not appropriately sent to the IRS' examination function for scrutiny, the inspector general further reports. SOURCE: [link=http://www.treas.gov/tigta/auditreports/2010reports/201041069fr.pdf]Treasury Inspector General for Tax Administration

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