Some are taking the first time home buyer credit when they don’t qualify

Some are taking the first time home buyer credit when they don’t qualify

Some will debate the merits of the first time home buyers tax credit, but one thing is not up for debate. Any preparer or taxpayer that decides to fraudulently take the credit is risking an IRS audit. The IRS has implemented several programs that will assist them in determining if the credit filed for are legitimate.

More than a million claims for the credit have been processed, quite significant number. There currently have been 100,000 claims identified as suspicious and open for review. There also are 167 claims currently being look at for criminal prosecution.

For more information

http://online.wsj.com/article/SB125599683058895389.html?mod=WSJ_hpp_MIDDLTopStories

http://www.marketwatch.com/story/kill-the-wasteful-home-buyer-tax-credit-2009-10-20