Too much Real Estate incentive ?
A breakdown in fraud controls allowed prison inmates to apply for and receive $9.1 million in Real Estate homebuyer tax credits from the federal government, according to an audit conducted by the Treasury inspector general for tax administration.
The Real Estate homebuyer tax stimulus is largely credited with giving a much needed lift to Real Estate home sales by creating a sense of urgency for potential buyers to move off the sidelines. It gave $8,000 to first-time buyers and $6,500 to current Real Estate homeowners looking to purchase a new primary residence.
The audit found that more than 1,200 prison inmates, including 241 serving life sentences, cashed in on the home purchase tax incentive. Those behind bars for life were granted $1.7 million.
A penitentiary return address may have been the most obvious red flag of an erroneous claim, but the Treasury inspector general found a number of other areas where fraud proliferated.
The audit found that the Internal Revenue Service (IRS) allowed multiple claims for the same home. In addition, claims totaling an estimated $17.6 million were permitted for homes purchased before the tax credit program began. The inspector also uncovered “questionable” claims by IRS employees themselves. Wow !
