{"id":11346,"date":"2010-02-17T11:24:23","date_gmt":"2010-02-17T18:24:23","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=11346"},"modified":"2010-02-17T11:24:23","modified_gmt":"2010-02-17T18:24:23","slug":"fraudulus-money-for-nothing-tax-credits-for-free","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/11346\/fraudulus-money-for-nothing-tax-credits-for-free\/","title":{"rendered":"Fraudulus: Money for Nothing, Tax Credits for free!"},"content":{"rendered":"

Incredibly, the IRS cannot do a lot to stop you, or anybody, from cashing in on the stimulus tax credits.<\/p>\n

According to the Treasury Inspector General for Tax Administration, the IRS is \u201cunable to verify eligibility for the majority of Recovery Act benefits at the time a tax return is filed.\u201d That doesn\u2019t mean they can\u2019t audit you, but only a small portion of filers are audited.\u00a0 If audited, you would have to correct any mistakes and you might face penalties.<\/p>\n

Understand that the IRS prefers that you file electronically for efficiency reasons.\u00a0 They rely on taxpayers to provide accurate information.<\/p>\n

For example, the inspector general recommended that the IRS require taxpayers to provide documentation to verify first-time homebuyer credit claims, but the IRS said no. Such a requirement, officials said, \u201cwould be burdensome and would potentially exclude as many as 2 million taxpayers from electronically filing.\u201d<\/p>\n

It wasn\u2019t until the Worker, Homeownership and Business Assistance Act of 2009 was signed into law on Nov. 6 that additional documentation was required for the credit and the IRS was given additional authority with respect to returns that did not include that documentation.<\/p>\n

Moreover, the IRS did not have math error authority \u2013 meaning that officials are not authorized to check calculations \u2013 to stop payment of erroneous credit claims. In essence, the IRS relied on taxpayers to be honest, didn\u2019t require hard documentation and could not check the math on certain credits.<\/p><\/blockquote>\n

That same article quoted above has a sidebar titled \u201cGetting money you don\u2019t deserve.\u201d<\/a> It goes through a hypothetical scenario of how the First Time Homebuyer Tax Credit can be scammed for extra benefits.\u00a0 The limitations of e-filing do not allow the IRS to transfer paper documentation to electronic format.\u00a0 So, there is a level of trust in the system.\u00a0 There is a level of trust in the system that the 73,799 taxpayers who are suspected of not correctly claiming the tax credit as of last July do not justify.\u00a0 Those suspected incorrect claims may total $504 million.<\/p>\n

Expect more news of fraud as this version of the Homebuyer Tax Credit, and other stimulus credits, wind down Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Incredibly, the IRS cannot do a lot to stop you, or anybody, from cashing in on the stimulus tax credits. According to the Treasury Inspector General for Tax Administration, the IRS is \u201cunable to verify eligibility for the majority of Recovery Act benefits at the time a tax return is filed.\u201d That doesn\u2019t mean they […]<\/p>\n","protected":false},"author":55,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[15,62],"tags":[],"class_list":{"0":"post-11346","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-carnival-of-real-estate","7":"category-dirty-laundry","9":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":10168,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10168\/the-bad-news-tens-of-thousands-of-people-including-irs-agents-and-including-at-least-one-four-year-old-fraudulently-claimed-the-8000-first-time-home-buyers-tax-credit-the-good-news-when-these\/","url_meta":{"origin":11346,"position":0},"title":"The bad news: Tens of thousands of people, including IRS agents and including at least one four-year-old, fraudulently claimed the $8,000 first-time home-buyer’s tax credit. The good news? When these morons take over your health care, you’ll probably die before you suffer too terribly much…","author":"Greg Swann","date":"October 25, 2009","format":false,"excerpt":"From Politics Daily, the you-just-can't-make-this-shit-up section:Four-year-olds are adorable, trustworthy, and, having never owned a home before, fully eligible for the first-time homebuyer tax credit that Congress passed in 2008. As a result of that loophole and numerous faulty reporting mechanisms, a House panel learned Thursday of tens of thousands of\u2026","rel":"","context":"In "Big Mother"","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":8752,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/8752\/swiss-accounts-condo-developers-and-an-open-door\/","url_meta":{"origin":11346,"position":1},"title":"Swiss Accounts, Condo Developers, and an Open Door","author":"Phil Hodgen","date":"June 5, 2009","format":false,"excerpt":"Americans who hide money offshore have a almost mystical belief in foreign bank secrecy laws. Whether it is Switzerland or the Carribean they believe that these countries\u2019 laws and bankers will protect them from the U.S. government\u2019s investigators and tax collectors. Secrecy has crumbled. You wouldn't know it from the\u2026","rel":"","context":"In "Big Mother"","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":16280,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/16280\/beating-the-irs-one-regulation-at-a-time\/","url_meta":{"origin":11346,"position":2},"title":"Beating the IRS One Regulation at a Time","author":"Damon Chetson","date":"January 28, 2013","format":false,"excerpt":"Occupational licensing is a tricky topic for those of us who have \"professional\" occupations. The notion that any old schmuck can simply hang out a shingle - in the case of a law practice - or open a brokerage with nothing more than a computer, smartphone, and printer - in\u2026","rel":"","context":"In "Innovation"","block_context":{"text":"Innovation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/innovation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1558,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1558\/pay-the-loan-down-and-refinance-later-the-irs-is-out-to-getchya\/","url_meta":{"origin":11346,"position":3},"title":"Pay the Loan Down and Refinance Later? The IRS is Out To Getchya !","author":"Brian Brady","date":"June 21, 2007","format":false,"excerpt":"Rising real estate prices and serial \"cash-out\" refinance transactions has the IRS licking their chops. Mortgage interest deductions are limited to the acquisition indebtedness plus a maximum of $100,000 for home equity indebtedness. Scofflaws have taken advantage of the fact that the IRS is not able to track the segregation\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1071,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1071\/understanding-why-depreciation-isnt-just-an-add-on-cost-segregation\/","url_meta":{"origin":11346,"position":4},"title":"Understanding Why Depreciation Isn’t Just An Add-on — Cost Segregation","author":"Jeff Brown","date":"February 28, 2007","format":false,"excerpt":"What is cost segregation? In a nutshell it's the process by which an investor can increase the amount of total depreciation taken on each investment property. It will deal almost exclusively with the personal property which is part of the real estate. These personal property assets include a building's non-structural\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":7923,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/7923\/handling-a-deal-with-a-foreign-buyer-or-seller\/","url_meta":{"origin":11346,"position":5},"title":"Handling a deal with a foreign buyer or seller","author":"Phil Hodgen","date":"April 17, 2009","format":false,"excerpt":"I am an international tax lawyer. I handle lots of real estate transactions with foreign sellers and buyers. I don't have a real estate license, and I don't ask for a piece of the commission. Got that out of the way for ya, didn't I? Here are a few things\u2026","rel":"","context":"In "Big Mother"","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/11346","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/55"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=11346"}],"version-history":[{"count":2,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/11346\/revisions"}],"predecessor-version":[{"id":11348,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/11346\/revisions\/11348"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=11346"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=11346"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=11346"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}