Fri. Oct. 23 2009 | 8:15 AM ET
Discussing extending the homebuyer tax credit, with Howard Glaser, former HUD secretary counselor; Shari Olefson, Fowler White Boggs; and CNBC’s Trish Regan.
The IRS (Internal Revenue Service) is reporting there are more than 100,000 suspicious claims involving the $8,000 first-time-home-buyer Tax Credit. Currently there are 167 criminal cases regarding the tax credit.
As the December 1st, 2009 deadline for the tax credit nears, many hope Congress will extend and even potentially increase the tax credit. With over one million claims submitted, there’s no question of it’s success.
Abuse of the tax credit may affect whether Congress decides to extend the credit. Here’s an excerpt from a related article on the Wall Street Journal.
“I am concerned about recent reports that there have been fraudulent schemes involving the credit,” Rep. John Lewis (D., Ga.), chairman of a House Ways and Means oversight subcommittee, said in a statement. The subcommittee is planning a hearing on the problems on Thursday.
It’s sad to hear news of this sort. Many of my clients have told me that the tax credit weighed heavily in their decision to buy a home. Most first time home buyers said it’s an influence that’s originated from their parents, who are usually the first ones to mention the credit to them.
Let’s hope that these inquiries aren’t as negative as they appear. 100,000 of one million claims is 10% of the current tax credit claims submitted. That’s an overwhelmingly high percentage. Hopefully the tax payers simply made small mistakes when amending their 2008 returns, which is likely. First Time Home Buyers have the option of amending their 2008 returns or applying the credit to their 2009 returns.
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