First-Time Home Buyer Tax Credit Fraud?
By: Alison Paoli, Zillow PR Specialist | October 22, 2009
The General Accountability Office has reportedly frozen more than 110,000 first-time home buyer tax credit refunds pending civil or criminal examinations due to allegations of fraud. The main concerns are whether or not a home purchase actually took place and if the home buyer claiming the credit is technically a first-time home buyer as defined by the IRS.
In another article about the possible first-time home buyer tax credit fraud, reporter Dawn Kopecki reports that children as young as four years old have improperly received the first-time home buyer tax credit. And, according to the Treasury’s J. Russel George, who testified before Congress today:
They [IRS] also found that 580 taxpayers under 18 years old and therefore ineligible to buy a home claimed almost $4 million in tax credits.
The first-time home buyer tax credit ends Nov. 30, 2009. Here are a few resources that may help you if you are still trying to take advantage of the credit or want to learn more:
$8,000 First-time Home Buyer Tax Credit Ends Soon–Better Get Moving!
New Widget: Do You Qualify for the $8,000 First-time Home Buyer Tax Credit?
Rules and Forms in Place for $8,000 First-time Home Buyer Tax Credit
- Stumble it!
- Categories: 8000 tax credit
Comments
10 Comments so far
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Sherwoods Independent Property Consultant on October 22, 2009 11:15 pm
A very nice article but could have given more view on this particular issue.
Baltimore County Homes on October 23, 2009 4:55 am
As with any tax credit or incentave in our country, there will always be the few individuals that try and abuse the systems. Manytimes this ruins it for all the honest people who need the credit.
Jill on October 23, 2009 12:29 pm
any one besides me suspicious about the timing of the release of this news–just as pressure to extend it is building?
Realtors Push on Congress to Extend Tax Credit | The Chicago 77 on October 23, 2009 1:12 pm
[...] there are always a few who try and get what they are not entitled to leading to Congress to look at questionable claims. Share and [...]
Ask the Kansas City Broker on October 25, 2009 3:38 pm
This is the first I have heard of this. If it is true it speaks to the ability of our nations computer technology to allow a 4 year old to get the credit. It would be a shame to hold the credit from people that honestly met the requirements.
Erin on October 28, 2009 12:29 pm
Sounds like a confusing situation. I don’t know if this might help anyone understand who qualifies there is some good info at online at http://www.firsthomeexperience.com/main/. There might even be some things you could include in a follow on this topic.
Erin on October 28, 2009 12:31 pm
Sorry Typo
That should have read.
Sounds like a confusing situation. I don’t know if this might help anyone understand who qualifies, but there is some good info online at http://www.firsthomeexperience.com/main/. There might even be some things you could include in a follow-up on this topic.
Home Buying Advice on November 4, 2009 8:43 am
It’s pretty incredible that a 4 year old received the tax credit. I really could have used $8,000 when I was four.
Mark Harpster on November 18, 2009 1:26 pm
In addition to fraud, there are a great many first time homebuyers who unknowingly are purchasing homes when they are ineligible for the tax credit. If for instance, you are a first time homebuyer who is, or was, married to someone who owned a home at any time in the three years prior to closing, you are ineligible. This is also true in cases where the spouse is deceased. Contrary to what I had been told by several mortgage brokers and realtors, this still holds true even if the newly purchased home is in your name only.
Chandler AZ CPA on November 19, 2009 8:11 pm
There is no doubt that the fraud is out there. But these folks will find themselves in jail real soon.