Problems With the New Home Tax Credit Program

 Even though the idea behind the new home tax credit program was a good one it was set up in way that  allowed abuse.
 Now because of that abuse taxpayers who are applying for the credit are coming under intense scrutiny.
 To complicate it even more, the IRS hasn´t even updated their website with the rules they are now enforcing.


 The home buyer tax credit is part of legislation officially known as the Worker, Home Ownership and Business Assistance Act of 2009 that extends and expands similar legislation enacted in February of 2009.

 From the beginning, there have been thousands of cases where refunds were paid out because of fraudulent filings.

 An audit by the Treasury Department found more than 20,000 instances where homes may not have actually been bought, thousands more where the filer already owned a home, 3200 claims from people who couldn´t prove they were in the country legally and an unspecified number of IRS employees that wrongfully applied for the credit.