First Time Homebuyer Tax Credit

Ironic timing, but just as the first time homebuyer tax credit program is drawing to a close, and Realtors and lenders are rallying congress to extend and expand the homebuyer tax credit, the IRS is warning about fraud in the program. Per a news brief in USA Today on 10/21/09, 1.4 million tax returns have been filed to take advantage of the $8K credit and it has cost the U.S. government about $10 billion. The inspector general found at least 70,000 tax credit claims granted to individuals who do not appear to qualify for it.

http://www.irs.gov/newsroom/article/0,,id=211399,00.html