Rose of Sharon Jewelry

The $8K home buyer credit helped thousands buy a new home. But shame on the IRS for allowing 1,295 inmates get $9.1 million thru fraud!

That’s right! 1,295 prison inmates (including 241 serving life sentences) received the $8K home credit. And this total is from the blatantly obvious filings such as single returns while they were incarcerated. Just think what $9.1 million could do to help those really in need during this recession like extending unemployment benefits.

Additionally, 2,555 taxpayers received $17.6 million for homes that were purchased BEFORE the eligibility date. This is simply just negligent accounting by the IRS! A simple programming routine could have stopped $17.6 million credits from being paid in error.

Another 10,282 taxpayers applied for the tax credit based on a home that was also claimed by another taxpayer. USA Today reported one case where the house was used in 67 separate claims.

The IRS is working to recover these funds but what as an incarcerated prisoner got to lose. The money went to a Post Office box and someone on the outside collected it!

While the IRS reported that less than one-half of 1% of the credits paid out were discovered (so far) to be fraudulent. So what! It costs to recover the funds while millions are being used to finance a dishonest life!