IRS issues $37M in questionable refunds to first-time homebuyers

New York /
Jul.July 25, 2011 02:41 PM

The Internal Revenue Service issued an estimated $37 million in questionable refunds to buyers using the first-time homebuyer tax credit, a federal audit conducted by the Treasury Inspector General for Tax Administration found.

The report, released today, shows that some taxpayers received multiple refunds of the homebuyer credit, and others amended tax returns in order to qualify for a version of the credit that did not require repayment. Not all questionably amended claims were sent on for examination or scrutiny.

The tax credit, introduced in 2008, is a refundable credit available to taxpayers who are purchasing a principal residence. In order to qualify, they cannot have owned a residence for three years prior to the date they bought their new home. There have been various amendments to the credit’s regulations.

“While in response to our previous recommendations the IRS took a number of positive steps to process homebuyer credits claimed on amended returns, this report found additional issues related to the credit,” J Russell George, Treasury inspector general for tax administration, said in a statement. — Katherine Clarke


Related Articles

arrow_forward_ios
From left: Robert Mercer with 48-05 Metropolitan Avenue and Gary Barnett with 17 West 60th Street (Getty, Google Maps, Bulado General Contractors Corp)
$730M loan bundle funds slew of NYC projects
$730M loan bundle funds slew of NYC projects
Moishe Mana, Eugene Lemay and the Mana Contemporary (Getty, Wikimedia)
Moishe Mana employee indicted in $7.8M tax avoidance scheme
Moishe Mana employee indicted in $7.8M tax avoidance scheme
Ministerial privilege: Would Tony Blair’s transfer tax loophole work in the US?
Ministerial privilege: Would Tony Blair’s transfer tax loophole work in the US?
Ministerial privilege: Would Tony Blair’s transfer tax loophole work in the US?
Startup wants to demystify real estate tax breaks
Startup wants to demystify real estate tax breaks
Startup wants to demystify real estate tax breaks
First Metaverse REIT could hit public exchange within a year
First Metaverse REIT could hit public exchange within a year
First Metaverse REIT could hit public exchange within a year
The agency is challenging $21 billion in deductions over a three-year period (Getty)
IRS probes promoters of tax-deductible property easements
IRS probes promoters of tax-deductible property easements
Photo Illustration of Donald Trump (Illustration by Kevin Rebong for The Real Deal)
Treasury Department must give Trump’s tax returns to Congress: DOJ
Treasury Department must give Trump’s tax returns to Congress: DOJ
Pandemic could cut assessed property values by 10%
Pandemic could cut assessed property values by 10%
Pandemic could cut assessed property values by 10%
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...