IRS Gets Ripped Off On Homebuyer Tax Credit

Posted 2011-04-17 10:12
by Karl Denninger
in Federal Government

Perhaps Turbo Timmy's boss might want to consider that it is the very acts of the scoundrels in our government and on Wall Street that set the table - and example - for this behavior:

Friday's report is the latest in a series of audits George has conducted on the homebuyer tax credit. It says the agency paid out $513 million in questionable claims for the homebuyer tax credit.

Questionable?

Previous tax returns showed home purchases (e.g. mortgage interest deductions), 13,000 people claimed the credit although they bought nothing, over 1,000 so-called purchasers were in prison and 96 were audacious enough to claim it even though they were not yet 18 years old.

Yeah.

IRS spokeswoman Michelle Eldridge said the agency worked hard to enforce a complicated tax credit that provided nearly $29 billion to more than 4 million taxpayers. The agency audited nearly 448,000 returns and blocked or denied nearly 426,000 questionable claims, she said.

Hmm.... almost 95% of the time when they looked they found a scam? That's a pretty-impressive hit rate. Now how many times did people get away with it, and where are the prosecutions of those who stole the money?

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