Audit Shows Prison Inmates Received $9M in Homebuyer Tax Credits

DSNews.com recently wrote a revealing and shocking article concerning prison inmates receiving homebuyer tax credits! Read a portion of it below:

A breakdown in fraud controls allowed prison inmates to apply for and receive $9.1 million in homebuyer tax credits from the federal government, according to an audit conducted by the Treasury inspector general for tax administration.

The homebuyer tax stimulus is largely credited with giving a much needed lift to home sales by creating a sense of urgency for potential buyers to move off the sidelines. It gave $8,000 to first-time buyers and $6,500 to current homeowners looking to purchase a new primary residence.

The audit found that more than 1,200 prison inmates, including 241 serving life sentences, cashed in on the home purchase tax incentive. Those behind bars for life were granted $1.7 million.

A penitentiary return address may have been the most obvious red flag of an erroneous claim, but the Treasury inspector general found a number of other areas where fraud proliferated.

The audit found that the Internal Revenue Service (IRS) allowed multiple claims for the same home. In addition, claims totaling an estimated $17.6 million were permitted for homes purchased before the tax credit program began…

Read the rest of this article here.

Yahoo! News also has an article on the same subject.

Renee West
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Renee West

Broker Associate at Villa Real Estate
I'm a real estate broker associate in Newport Beach & Corona del Mar, CA, with Villa Real Estate.
Contact me at (714) 914 9060 or rwest@villarealestate.com for all your real estate wants and needs.
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