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1,295 Prisoners Claimed the First-Time Homebuyer Tax Credit

The Obama administration homebuyer tax credit program granted $9.1 million to 1,295 prisoners who were incarcerated when they said they purchased their home.

Jul 31, 2020
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The Obama administration homebuyer tax credit program granted $9.1 million to 1,295 prisoners who were incarcerated when they said they purchased their home. Many such discrepancies are identified in a reportby the Treasury Department Inspector General for Tax Administration and Internal Revenue Service today.
“In swiftly making the First Time Homebuyer Credit immediately available to more than 2.6 million homebuyers, a very small number of payments were made to prisoners incorrectly, which the IRS is now taking all steps to recapture and to prevent going forward,” the IRS said. “The IRS will follow up on every instance of an improper prisoner payment and take swift and appropriate enforcement actions.” It has also promised to go after and recoup any other losses from fraudulent claims on the effective, if easy-to-game, program.
Other issues in the full report: 2,555 taxpayers received $17.6 million for homes purchased prior to the dates allowed by law; 241 prisoners claimed the credit while serving life sentences. (None of the prisoners cited in the report were filing joint returns either, by the way.) In one case, 67 taxpayers claimed the credit on the same home. All in all, more than 10,000 filed for the credit on homes used by other taxpayers to claim the credit. And, 34 IRS employees claimed the credit despite already owning homes — in addition to the 53 IRS employees publicly censured for doing the same last summer.
Camilo Wood

Camilo Wood

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Camilo Wood has over two decades of experience as a writer and journalist, specializing in finance and economics. With a degree in Economics and a background in financial research and analysis, Camilo brings a wealth of knowledge and expertise to his writing. Throughout his career, Camilo has contributed to numerous publications, covering a wide range of topics such as global economic trends, investment strategies, and market analysis. His articles are recognized for their insightful analysis and clear explanations, making complex financial concepts accessible to readers. Camilo's experience includes working in roles related to financial reporting, analysis, and commentary, allowing him to provide readers with accurate and trustworthy information. His dedication to journalistic integrity and commitment to delivering high-quality content make him a trusted voice in the fields of finance and journalism.
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