It should come as little suprise that the lure of an $8,000 check from the Federal Government – especially one you can get by re-filing taxes outside of the real estate closing - is tempting bait for scam artists:
“The Internal Revenue Service is examining more than 100,000 suspicious claims for the first-time home-buyer tax break, another sign of potential trouble for the soon-to-expire program.
“The IRS said it was investigating 167 “criminal schemes” involving the credit, according to the subcommittee. IRS officials on Monday declined to describe the suspected schemes or provide additional details.”
But hey, with another $16.7 Billion worth of housing tax credits being proposed, $800 Million in fraud barely amounts to spilled milk – Just take it from the Wall Street Bonus pool.
Home Buyer Credit is Focus of Inquiry [WSJ]